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By David Winning
SYDNEY – Australian electricity distributor AusNet Services Ltd. announced its intention to recommend that shareholders accept a buyout proposal from Brookfield Asset Management Inc. which values its equity at A $ 9.58 billion ($ 6.96 billion).
Brookfield had raised its offer to A $ 2.50 per share in cash after making two earlier approaches valued at A $ 2.35 per share and A $ 2.45 per share. The offer price will be reduced by the value of any dividends declared by AusNet prior to the closing of a transaction, AusNet said.
AusNet, which said Brookfield’s first proposal was received on August 30, closed trading last week at A $ 1.98.
AusNet has stated that it will authorize Brookfield Asset Management Inc. to perform due diligence on a proprietary basis to determine whether a firm offer can be made.
“The indicative proposal is subject to several conditions, including due diligence, FIRB approval, the unanimous support and recommendation of the AusNet board of directors, and the execution of an act of implementing the program.” , AusNet said.
Write to David Winning at [email protected]
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