AGL En­ergy in $3.02b of­fer for telco Vo­cus

The West Australian - - WESTBUSINE­SS - MICHAEL MEHR

AGL En­ergy has an­nounced a new $3.02 bil­lion of­fer for telco Vo­cus less than a week af­ter Swedish pri­vate eq­uity firm EQT In­fra­struc­ture scrapped its own takeover bid for the Syd­ney­based com­pany.

The en­ergy provider yes­ter­day de­tailed a non-bind­ing plan to ac­quire Vo­cus at $4.85 a share.

AGL, which said on May 31 that it had been un­able to agree on due-dili­gence terms with Vo­cus and had with­drawn its pre­vi­ous of­fer, stated any suc­cess­ful ac­qui­si­tion would pro­vide it with “ac­cess to a mar­ket-lead­ing in­te­grated broad­band fi­bre as­set base”.

Vo­cus’ board said yes­ter­day it was giv­ing AGL ex­clu­sive ac­cess to con­duct due dili­gence on the owner of the iPrimus and Dodo brands for four weeks to come up with a bind­ing pro­posal.

“There is a clear mar­ket op­por­tu­nity for Vo­cus, which is gen­er­at­ing sig­nif­i­cant in­ter­est in our busi­ness and our as­sets,” the telco’s chief ex­ec­u­tive Kevin Rus­sell said.

“We are fo­cused on ex­e­cut­ing our turn­around strat­egy and de­liv­er­ing the op­por­tu­nity in front of us. How­ever, we have been clear that the board will al­ways act in the best in­ter­ests of our share­hold­ers to en­gage with cred­i­ble par­ties that bring for­ward pro­pos­als that are wor­thy of fur­ther con­sid­er­a­tion.”

A state­ment by the suitor said: “AGL’s in­ter­est in Vo­cus is con­sis­tent with AGL’s strat­egy to meet the needs of in­creas­ingly con­nected cus­tomers as en­ergy and data value streams con­verge and the tra­di­tional en­ergy sec­tor trans­forms.”

AGL shares closed down $1.51, or 7.2 per cent, to $19.40. Vo­cus fin­ished up 34¢, or 8.9 per cent, to $4.17.

Newspapers in English

Newspapers from Australia

© PressReader. All rights reserved.