Australia’s largest power company AGL Energy has rejected a takeover bid from software billionaire Mike Cannon-Brookes and Canadian asset management giant Brookfield.
The AGL Energy board said the unsolicited proposal it received on Saturday morning “materially undervalues” the company and was not in shareholders’ best interests.
Billionaire founder of software giant Atlassian, Mike Cannon-Brookes, launched the shock joint bid to take control of AGL Energy, paving the way for a quicker shutdown of the energy giant’s coal-fired power stations.
Mr Cannon-Brookes joined forces with Brookfield and put the takeover bid forward to AGL on Saturday, reported.
AGL said the interest from a consortium led by Brookfield Asset Management and including Grok Ventures was to acquire 100 per cent of the shares in AGL for $7.50 per share by way of an unsolicited proposal.
“On the basis of the information presented, the AGL Energy board has determined that the unsolicited proposal materially undervalues the company on a change of control basis and is not in the best interests of AGL Energy shareholders,” the company said in a statement on Monday.
Brookfield is one of the world’s largest renewable energy investors and was last year behind an $18m bid to take control of Victorian electricity and gas distributor AusNet Services.
Worth an estimated $30bn, Mr Cannon-Brookes is a vocal proponent of reducing carbon emissions and has invested billions in renewable energy forms and climate change philanthropy.
Among his most recent purchases was a 25 per cent stake in the South Sydney Rabbitohs NRL club and a minority stake in the Utah Jazz NBA team.
