Tech billionaire Mike Cannon-Brookes and his partners Brookfield Asset Management have backed down on their bid to take over AGL energy.
The power giant on Sunday rejected a second buyout offer worth around $9 billion.
Mr Cannon-Brookes and his Canadian partner submitted a pitch for $8.25 per share over the weekend, a 75c per sxjmtzywhare increase on it’s original $7.50 bid.
Overall, it was a 10 per cent increase on the original $8 billion bid made last month.
But after the board rejected plan for a second time, Mr Cannon-Brookes said it he was putting down the pens
“The Brookfield-Grok consortium looking to take private & transform AGL is putting our pens down – with great sadness,” he confirmed on social media.
“This weekend, the board rejected our raised offer of $8.25. 46% more than the price of $5.55 about 90 days ago
“The board are proceeding with their demerger path. This path is a terrible outcome for shareholders, taxpayers, customers, Australia and the planet we all share.”
The Canadian firm was funding about 80 per cent of the bid, with Mr Cannon-Brookes’ Grok Ventures stumping up the remaining cash.
AGL is expected to update the ASX on Monday morning, outlining the reasons why it rejected the takeover bid.
The electricity company’s board rejected the first bid over claims it materially undervalued the company.
It’s expected AGL will now press ahead with a controversial move to split the company.
Mr Cannon-Brookes had hoped, if his bid was successful, to accelerate AGL’s plan to exit from coal, and close all three coal plants by 2030.
