Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Brookfield Makes $7 Billion Bid for Australian Power Company

Published 2021-09-19, 09:26 p/m
Updated 2021-09-19, 09:26 p/m
© Bloomberg. Power lines stretch across farmland in the Latrobe Valley, Australia, on Saturday, Feb. 23, 2019. Australian Prime Minister Scott Morrison is pledging A$2 billion ($1.4 billion) over the next 10 years in direct action to lower greenhouse gas emissions, making a climate pitch to voters ahead of elections due by May. Photographer: Carla Gottgens/Bloomberg

© Bloomberg. Power lines stretch across farmland in the Latrobe Valley, Australia, on Saturday, Feb. 23, 2019. Australian Prime Minister Scott Morrison is pledging A$2 billion ($1.4 billion) over the next 10 years in direct action to lower greenhouse gas emissions, making a climate pitch to voters ahead of elections due by May. Photographer: Carla Gottgens/Bloomberg

(Bloomberg) -- AusNet Services Ltd., which owns Australian power transmission and distribution assets, will enter takeover talks after Brookfield Asset Management Inc. made an approach valuing the company at about A$9.6 billion ($7 billion).

Melbourne-based AusNet, which serves about 1.5 million customers in southeastern Victoria state, has contacted its two largest holders, Singapore Power International Pte and State Grid Corp. of China, the company said Monday in a statement.

Brookfield’s indicative offer of A$2.50 cash per share is a 17% premium to AusNet’s closing price Friday, according to the target. The parties will carry out due diligence and have agreed to negotiate on an exclusive basis for at least seven weeks.

The prospective deal follows a spate of M&A activity for infrastructure assets in Australia, including Sydney toll roads, energy company Spark Infrastructure Group and Sydney Airport. 

“As the incumbent primary Victorian transmission network owner, AusNet is uniquely positioned for growth as the energy transition accelerates driven by decarbonization,” AusNet said in its statement.

©2021 Bloomberg L.P.

© Bloomberg. Power lines stretch across farmland in the Latrobe Valley, Australia, on Saturday, Feb. 23, 2019. Australian Prime Minister Scott Morrison is pledging A$2 billion ($1.4 billion) over the next 10 years in direct action to lower greenhouse gas emissions, making a climate pitch to voters ahead of elections due by May. Photographer: Carla Gottgens/Bloomberg

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.