Australia's AGL backs out of Vocus offer for second time
June 17 (Reuters) - Australia's AGL Energy Ltd said
on Monday it would stop due diligence on Vocus Group
just days after it offered A$3.02 billion ($2.08 billion) for
the telecoms firm, and just weeks after withdrawing a previous
Analysts have been skeptical about the benefits AGL would
derive from a takeover of Vocus, which is in the midst of
turning around its business.
Three other potential suitors have withdrawn offers for the
telecoms firm over the past two years.
AGL initially said its second proposal, which was pitched
below a A$3.3 billion bid withdrawn by Swedish private equity
firm EQT Infrastructure, would be accretive to earnings.
"We are no longer confident that an acquisition of Vocus at
the proposed terms would represent sufficient certainty of
creating value for AGL shareholders," AGL's Managing Director &
CEO Brett Redman said in a statement.
Earlier in June, AGL warned fiscal its 2020 earnings will be
up to A$100 million lower because its Loy Yang A power station
in Victoria would be offline until December due to damage caused
by an electrical short.
($1 = 1.4545 Australian dollars)
(Reporting by Nikhil Kurian Nainan in Bengaluru; editing by
First Published: 2019-06-17 01:38:52
Updated 2019-06-17 02:01:09
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