AGL Energy Says No Thanks to Brookfield and Billionaire Mike Cannon Brookes’ Offer
Posted on 02/21/2022
Australia’s AGL Energy rejected an offer for Brookfield Asset Management and Grok Ventures, the private investment company of Mike and Annie Cannon-Brookes, to buy the listed company. The buyers’ offered to buy 100% of the shares of AGL (ASX:AGL) via a Scheme of Arrangement for cash or scrip, consideration representing total value of A$7.50 per AGL share, implying an equity value of A$ 5.0 billion. The buyer consortium proposal is fully funded and represents a circa 20% premium to the threemonth volume weighted average price of A$ 6.36 per share.
Brookfield will invest via its Brookfield Global Transition Fund, which is in the final stages of raising approximately US$ 15 billion. The investment in AGL would be the largest investment from the fund to date, not only in terms of capital invested but also in terms of the expected renewables build out and carbon reduction. The consortium has engaged Citi and Jarden as financial advisors. The Brookfield Global Transition Fund, co-led by Mark Carney, Brookfield Vice Chair and Head of Transition Investing, and Connor Teskey, CEO of Brookfield Renewables, is
Brookfield’s inaugural fund focusing on investments that accelerate the global transition to a net-zero carbon economy, while delivering strong risk-adjusted returns to investors. Mark Carney is the former Governor of the Bank of England and Bank of Canada.
