Search by ticker code:
Generic filters

Search by ticker code:
Generic filters

Search by ticker code:
Generic filters

AGL Makes Vocus (VOC) Another Offer – Will it Go Ahead This Time?

AGL Energy Limited (ASX: AGL) has announced that it has put forward a non-binding, indicative proposal to acquire all shares in Vocus Group Limited (ASX: VOC). Here’s what you need to know.

About AGL and Vocus

AGL is one of Australia’s largest electricity generation portfolio owners and operators and the largest ASX-listed investor in renewable energy. As of 2018, AGL had more than 3.6 million customer accounts.

Vocus is a vertically integrated telecommunications service provider, operating in the Australia and New Zealand markets. Thanks to a merger with M2 Group, it is responsible for numerous retail and business telco brands, such as Primus.

Previous Offers

Late last month, it came to light that AGL was interested in acquiring Vocus and had put together an internal team to crunch the numbers. It was revealed that AGL had put forward a non-binding indicative offer and was seeking access to due diligence material.

AGL’s release on 31st May 2019 stated that they were unable to agree on due diligence terms and the offer was withdrawn.

Vocus received an offer shortly afterwards from EQT Infrastructure for $5.25 per share. After due diligence, the offer from EQT was also terminated.

Newest Offer

AGL has now come back with another non-binding indicative proposal for $4.85 per share, and Vocus has this time given AGL exclusive due diligence access.

The proposal is subject to several conditions, including the four-week due diligence period, unanimous recommendation by the Vocus Board and entry into a scheme implementation agreement.

The agreement would then be subject to shareholder, court and regulatory approvals.

Vocus Managing Director and CEO Kevin Russel said of the proposal, “There is a clear market opportunity for Vocus, which is generating significant interest in our business and our assets.

“We are focused on executing our turnaround strategy and delivering the opportunity in front of us.”

Other AGL News

AGL also put out an announcement after market close on 7th June 2019, stating that an outage at the Loy Yang A power station may extend for seven months and have a material impact on FY20 profit. While AGL does not expect a significant impact to FY19 profit, FY20 underlying profit after tax is expected to be impacted by $60 million to $100 million.

Summary

AGL shareholders have a lot of information to respond to when the market opens this morning so AGL could be among the big movers today. As for the offer to acquire Vocus, it’s early in the process so it would be too soon to speculate on whether the acquisition will go ahead. AGL shareholders should be keeping a close eye on any further announcements.

If you’re looking for high-quality, dividend-paying shares, check out the companies in the free report below.

[ls_content_block id=”14945″ para=”paragraphs”]

Disclosure: At the time of writing, Max does not own shares in any of the companies mentioned.

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report for FREE by CLICKING HERE NOW and creating a 100% FREE Rask Account.

(Psst. By creating a free Rask account, you’ll also get access to 15+ online courses, 1,000+ podcasts, invites to events, a weekly value investing newsletter and more!)

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

Skip to content