Brookfield’s AGL stake sparks takeover talk

AGL Energy’s rejected takeover suitor, Brookfield Asset Management, has emerged with a 2.56 per cent stake in the power giant, rekindling speculation it may make a fresh tilt for the power retailer.

Brookfield owns 17.2 million shares to give it a 2.56 per cent stake in the company, according to AGL.

“AGL became aware of this information through routine registry analysis responses, and therefore the information is historical. It is possible that subsequent trading may have altered the position,” AGL said in a statement.

“AGL has not received any updated acquisition proposal from Brookfield, since the two proposals received earlier this year that were announced to the market. AGL is continuing to focus on the previously announced review of AGL’S strategic direction.”

Brookfield was not immediately available for comment.

The Canadian suitor was twice rejected with takeover bids in February and March launched through a consortium with billionaire Mike Cannon-brookes, and in March it quit the race to focus on other deals, saying it was not in “active discussions” on a buyout.

The consortium “is putting our pens down with great sadness”, Mr Cannon-brookes tweeted on March 6.

Its last bid was $8.25 a share, a 75c fillip on its original offer, but both were shunned by AGL’S board.

Mr Cannon-brookes subsequently built an 11.3 per cent stake in AGL that he used to engineer the demise of its planned demerger.

AGL chief executive Graeme Hunt said in May that Mr Cannon-brookes might be plotting a third takeover attempt for the power giant, with the company saying shareholders were confused over the tech titan’s intentions.

Brookfield’s Mark Carney in March said it would look elsewhere if AGL didn’t value its buyout tilt and was considering 50 transactions around the world in a wide range of industries.

Brookfield was to fund 80 per cent of the takeover offer and Mr Cannon-brookes the 20 per cent balance.

AGL is working to finetune the focus of its new strategy including a reassessment of decarbonisation plans and which strategies may be halted. The power giant dumped its planned split into retail and generation units on May 30 amid calls from Mr CannonBrookes for a swifter exit from coal.

AGL directors Vanessa Sullivan and Graham Cockroft were handed oversight of a strategic review of the company and have now been joined by fellow board member Mark Bloom to reboot the company’s strategy.