AGL- Energy has rejected a takeover bid by Australian Tech billionaire Mike Cannon Brookes and Canadian asset management giant Brookfield. AGL is Australia’s most polluting company, however, Mike Cannon Brookes and Brookfield had plans to shut its coal power plants. Meanwhile, ALG rejected saying the initial offer ‘’ materially undervalues the company’’.
Offer by Brookfield and Cannon-Brookes
Michael Cannon-Brookes Australian billionaire is CEO of Software Company Atlassian, whereas, Brookfield Asset Management Inc. is a Canadian multinational company. They had made an extraordinary offer to take over the company. Also, made earlier plans to shut down the coal. AGL rejected the unsolicited preliminary offer of $7.50 a share, which offered a 4.7 % premium on Friday’s closing price of $ 7.16 including the debts. The offer was in the range of almost $8 billion. According to AGL, the offer was not in the interest of shareholders.
Furthermore, Cannon-Brookes said they would continue to work on a potential takeover of AGL. It involves Brookfield and Grok Ventures acquiring energy retail divisions. Moreover, If they become successful, they will move forward with AGL’s existing coal-fired power.
Vocal Advocate of Climate Crisis
Cannon-Brookes, is a vocal advocate of the climate crisis, showing interest in backing clean energy assets. He believes that the company can take to net zero emissions by 2035. He says, ‘’ on a global scale this is a massive decarbonisation effort. The economics stacks up, the science stacks up. What we require is just the gumption to go it and make it happen, and that’s what we’re trying to do.’’
However, Brookfield and Grok Ventures showed disappointment with AGL’s response. The proposal was in the best interest of the shareholders. Also, Brookfield managing partner Stewart Upson said that the consortium had a ‘’ defined plan to significantly rationalize.’’ Stewart says investors need to avoid carbon-intensive businesses and be willing to tackle emissions.
