Canadian asset manager Brookfield and Australian billionaire Mike Cannon-Brookes have reportedly joined forces to made a bid for AGL Energy, with a view to closing the company’s coal-fired power stations earlier than scheduled, according to the Australian Financial Review.
The pair are reported to have submitted a non-binding and indicative offer over the weekend, which is being considered by AGL Energy’s board.
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“The bid values AGL Energy at about $8 billion, including debt, or $7.50 a share, which was a 4.7 per cent premium to AGL Energy shares’ last close and a 20 per cent premium to its 30 day average traded price,” the AFR report said.
Brookfield and Cannon-Brookes’ bid is to acquire AGL Energy in full before the company’s demerger goes ahead.
While AGL Australia is committed to a net-zero goal by 2047, Brookfield and Cannon-Brookes reportedly want to bring that forward by at least 10 years.
Brookfield’s is one of the world’s largest investors in renewable power, having led an $18 billion consortium bid for Victoria’s electricity and gas distributor AusNet in 2021.
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Australian billionaire Mike Cannon-Brookes has been vocal about his desire to see Australia decarbonise as quickly as possible, pledging $1.5 billion of his personal wealth towards this goal.
The bid comes after Origin’s shock announcement late last week that it intended to close Eraring—Australia’s largest coal-fired power station—in 2025.
UPDATE 21/2/22: The AGL board has rejected Brookfield and Cannon-Brookes’ bid, saying it “materially undervalues” the company and was not in shareholders’ best interests.
