Australia's AGL backs out of Vocus offer for second time

(Adds background)

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 approach.

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Three other potential suitors have withdrawn offers for the telecoms firm over the past two years.

AGL initially said its second proposal, which was pitched below a A$3.3 billion bid withdrawn by Swedish private equity firm EQT Infrastructure, would be accretive to earnings.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 Richard Pullin)

First Published: 2019-06-17 01:38:52
Updated 2019-06-17 02:01:09


© 2019 Thomson Reuters. All rights reserved. Reuters content is the intellectual property of Thomson Reuters or its third party content providers. Any copying, republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters shall not be liable for any errors or delays in content, or for any actions taken in reliance thereon. "Reuters" and the Reuters Logo are trademarks of Thomson Reuters and its affiliated companies.