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AGL Energy targets retail customer growth with $158M cash takeover bid for Australian Power and Gas

Published: 13:00 15 Jul 2013 AEST

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GL Energy (ASX: AGK) has made an all cash takeover offer of $0.52 per share for Australian Power and Gas (ASX: APK), implying an enterprise value of about $158 million for the electricity and gas retailer.

The offer represents a 33% premium to APK’s closing price of $0.39 on 12 July 2013 and a 51% premium to APG’s 3 month volume weighted average price of $0.344 cents.

AGL is acquiring APK to strengthen its retail business, increasing its total electricity customers by 10%. This will achieve its goal of securing 800,000 customers in New South Wales.

APK has recommended that shareholders the offer in the absence of a superior proposal and subject to the independent expert concluding the offer is reasonable.

The offer is also conditional on having a relevant interest in at least 90% of APK’s shares by the end of the offer and the Australian Competition and Consumer Commission’s notification that it does not intend to oppose the acquisition.

AGL has already entered into agreements for the outright acquisition of 19.9% of APK's issued shares from APG's 3 major shareholders - – Nippon Gas, The Cobra Group, and interests associated with Richard Poole.

These shareholders have also said they will accept the offer for the balance of their shareholdings, about 37% of issued shares by no later than the business day after the Offer becomes unconditional in the absence of a superior proposal.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

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