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Brookfield Makes $7 Billion Bid for Australian Power Company By Bloomberg

by Mike Robinson

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© Bloomberg. The power lines ran across farms in Australia’s Latrobe Valley on Saturday February 23rd 2019. Scott Morrison, the Australian Prime Minister is promising A$2Billion ($1.4 Billion) in 10 year direct actions to reduce greenhouse gas emissions. This climate pitch will be made to voters before May’s elections. Photographer: Carla Gottgens/Bloomberg

(Bloomberg) — AusNet Services Ltd., which owns Australian power transmission and distribution assets, will enter takeover talks after Brookfield Asset Management Inc. made an approach valuing the company at about A$9.6 billion ($7 billion).

Melbourne’s AusNet has reached out the two biggest holders of AusNet, State Grid Corp. and Singapore Power International Pte.

Brookfield’s indicative offer of A$2.50 cash per share is a 17% premium to AusNet’s closing price Friday, according to the target. Due diligence will be conducted by the parties and they have agreed to negotiate only for a minimum of seven weeks.

The prospective deal follows a spate of M&A activity for infrastructure assets in Australia, including Sydney toll roads, energy company Spark Infrastructure Group and Sydney Airport. 

“As the incumbent primary Victorian transmission network owner, AusNet is uniquely positioned for growth as the energy transition accelerates driven by decarbonization,” AusNet said in its statement.

©2021 Bloomberg L.P.

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