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(Bloomberg) — AGL Energy Ltd. rejected a multibillion-dollar takeover bid from Brookfield Asset Management Inc. and technology billionaire Mike Cannon-Brookes.
The A$7.50 per share proposal “materially undervalues” the company and is not in the best interests of shareholders, Sydney-based AGL said in a statement to the Australian Securities Exchange. Investors would miss the opportunity to realize the potential future value of the company under AGL’s proposed demerger of its generation assets, which includes its fleet of coal-fired power stations, Chairman Peter Botten said in the statement.
AGL, which formed in 1837, is responsible for the largest share of Australia’s scope one greenhouse gas emissions, and this month disappointed climate campaigners when it announced plans to bring forward the decommissioning of two giant coal plants by only a few years.
AGL shares closed at A$7.16 on Friday, valuing the company at A$4.7 billion ($3.4 billion).
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