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The plans of tech billionaire and Atlassian co-founder Mike Cannon-Brookes and Canadian property giant Brookfield to accelerate the intention of AGL to move to the renewable energy market was rejected.
Cannon-Brookes took to Twitter to notification that the Brookfield-led consortium, which includes Grok Ventures, Cannon-Brookes’ private investment arm, is “putting our pens down”, after the Australian energy giant rejected a takeover offer the second time.
“Our path is the world’s largest decarbonization project. From Aus [sic]’ said Cannon-Brookes.
Under its second takeover bid, the group is offering AGL $8.25 per share, up 10 per cent from its initial offering of A$7.50, which is also a refuse.
At the time of the initial tender offer, the AGL board of directors said the proposal “materially undervalues” the company and would not be in the “best interests” of shareholders.
This time, the AGL board said the proposal is “still far below” what it considers the company’s “fair value” than what is expected to be distributed under company’s proposed analyzer.
“The proposal that was not requested to be revised further misses the opportunity that AGL Energy shareholders have through our proposal analytics suite to realize potential future value,” said President AGL Energy. , Peter Botten told shareholders Monday.
Under AGL’s divestment plan, the company will be split into two separate businesses: AGL Australia will own the electricity, gas and telecommunications retail business along with its clean energy assets while Accel Energy will continue to retain ownership of coal and gas. – fire generators in Australia.
“The proposed classifier will be a catalyst for the realization of potential shareholder value. It will create two industry-leading companies with distinct value propositions. It will enable each businesses are valued separately and more actively by the market based on their own particular value, Botten said.
However, according to Cannon-Brookes, going ahead with the demerger scheme is “a dire outcome for shareholders, taxpayers, customers, Australia and the planet we all share”.
The proposed classification is expected to be completed by June 30, 2022.
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