AGL makes $100 million move
AGL Energy has shown that if you can’t beat your competitors, you can always buy them out.
AGL Energy has announced it will buy out its industry rival for $100 million. In a very brief media release put out this morning, AGL Energy said it was looking to make a move on Australian Power and Gas, a fellow energy provider.
Australian Power and Gas have reportedly told shareholders it would be wise to accept AGL’s offer of 52 Australian cents per share.
The offer represents a 33 per cent premium on the last traded price in Australian Power and Gas, leading to a reasonable pay-out for investors. The sale values Australian power and Gas at A$158 million including debt.