AGL flatly rejects $ 250m offer for Liddell

AGL has declined Alinta Energy’s $ 250 million offer to buy Liddell Power Station and reaffirmed its decision to close the plant in 2022.

The power giant says it assessed the offer from Alinta and its Hong Kong- based owner, Chow Tai Gook Enterprises, and that the deal significantly undervalues future cashflow from the NSW site. AGL said the offer was not the interest of its share- in holders and that it would stick to its NSW power generation plan, which includes repurposing the Liddell site to address any capacity shortfall after its closure in 2022.

“AGL has completed a thorough assessment of the offer and, after careful consideration, has advised Chow Tai Fook and Alinta that it will not proceed any further with the offer,” the company said.

“The AGL board has deter- mined that the offer is not in the best interests of AGL or its shareholders.”

Alinta made its bid for the ageing Hunter Valley power station in April, describing it as a “compelling proposition” for AGL shareholders.

The Turnbull Government has been urging AGL to accept the deal to keep the station open beyond its slated 2022 closure and to keep downward pressure on power prices.

Prime Minister Malcolm Turnbull wants Liddell to stay open until 2025, when Snowy Hydro 2.0 is online, to ensure there is no gap in power availability. AGL chief executive Andy Vesey has previously said the board had not been swayed by criticism from the Prime Minister and senior coalition figures because the decision to close the ageing power plant was based on a rigorous process.