Canadian asset manager Brookfield has snapped up a 2.5 per cent stake in power giant AGL, fuelling speculation it may seek to revive a push to take over the company.
AGL, the largest Australian electricity generator, informed investors on Thursday it had become aware that a subsidiary of Brookfield had bought 17.2 million shares late last week.
AGL’s coal-fired power stations are Australia’s biggest source of greenhouse gas emissions.Credit:Justin McManus
“It is possible that subsequent trading may have altered the position,” AGL said.
“AGL has not received any updated acquisition proposal from Brookfield, since the two proposals received earlier this year that were announced to the market. AGL is continuing to focus on the previously announced review of AGL’s strategic direction.”
Brookfield declined to comment.
The acquisition comes after Brookfield, in partnership with Australian tech billionaire Mike Cannon-Brookes’ investment vehicle Grok Ventures, lobbed two takeover offers for AGL earlier this year, which valued the company at more than $8 billion and came with a promise to invest a further $10 billion to $10 billion to build enough large-scale renewables and batteries to bring forward the closures of AGL’s fleet of coal-fired power stations in Victoria and NSW.
Brookfield and Mike Cannon-Brookes’ investment company Grok ventures lobbed two takeover offers for AGL earlier this year.Credit:Wolter Peeters
The board rejected the offers, arguing the bidding consortium was undervaluing the business and vowing to press ahead with long-held plans to demerge AGL’s coal-fired power stations from its retailing and clean energy businesses.
The consortium put its “pens down” in March and walked away from the takeover campaign. Brookfield and Grok are no longer in talks about making an offer.
