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Saturday, February 24, 2024

AGL Energy rejected huge takeover bid from Brookfield Asset Management

Australian company AGL Energy Ltd. rejected a multi-billion dollar bid from Brookfield Asset Management Inc. and technology billionaire Mike Cannon-Brookes, who plans to accelerate the closure of the company’s coal-fired power stations.

Brookfield and Cannon-Brookes investment company Grok Ventures has an A $ 20 billion ($ 14 billion) transformation plan to transform AGL into clean energy and “remains hopeful that an agreement can be reached,” the federation said in a statement. AGL shares have risen 11% to close higher since July.

“The board should continue to work with Brookfield and Cannon-Brookes, but they will need to significantly increase the supply if they want to bring in an investment community, although we agree with the ideas they propose,” said Jamie Hannah, deputy head. of investment and financial markets at Van Eck Associates Corp, which owns shares in AGL.

The $ 7.50 budget proposal, which is 4.7% of Friday’s closing price, “looks down on material” company, the Sydney-based AGL said in a statement. The company’s own plan to split its coal assets into separate sections will provide a better number of shareholders, and provide a responsible way to extract carbon, the service said.

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The public debate on Australia’s climate change and the role of coal, which still supplies much of the country’s electricity, intensified after wildfires erupted in late 2019 and early 2020. criticized for liking slow power changes. He encouraged other investors to use the sun and the atmosphere to build a faster green energy industry.

AGL, founded in 1837, is responsible for Australia’s largest greenhouse gas emissions sector, and this month has disappointed climate campaigners by announcing plans to bring back the withdrawal of two major coal industries in just a few years.

“If successful, this will be one of the biggest decarbonization projects in the world,” said Cannon-Brookes, software developer for Atlassian Corp. and the fourth richest man in Australia. AGL makes up more than 8% of Australia’s exports, he said. “This proposal will mean cheap, clean and reliable energy for customers.”

Brookfield’s plan will replace the seven-gigawatt capacity of the AGL mineral gasoline at least eight gigawatts of clean energy and storage capacity, which will enable the device to emit zero emissions by 2035, according to the consortium.

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Existing AGL plans will keep two key coal-fired industries into 2033 and 2045 respectively. Under its proposed emissions, Accel Energy, which will keep the company’s fuel assets in the pipeline, will focus on reducing greenhouse gas emissions by 60% by 2034.

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