Australia's AusNet agrees to $7.7 bln takeover by Brookfield

Reuters2021-11-01

Nov 1 (Reuters) - AusNet Services Ltd said on Monday it agreed to a binding A$10.2 billion ($7.66 billion) takeover offer by Brookfield Asset Management Inc , but added that rival bidder APA Group was free to make a better counter-offer.

The energy infrastructure firm said Brookfield's latest cash offer values it at A$2.65 a share, topping a more complex A$2.60-per-share bid by APA in late September.

With the binding agreement, AusNet said it ended APA's due diligence access, but added the gas pipeline operator was looking at whether it could increase the cash component of its bid after it was told Brookfield may revise its own.

"APA did not indicate that it would be able to offer a full cash alternative or the value level at which any improvement to its indicative proposal could be made," AusNet said in a statement.

APA did not immediately reply to a request for comment.

While the agreement includes a provision to terminate their deal if a better offer emerges, AusNet said it also included an A$101.7 million break fee.

Brookfield's offer also has the backing of Singapore Power Group and its 42.74% AusNet stake, the company said.

AusNet opened its books to APA after a government panel in October ordered an amendment to an exclusive agreement between it and Brookfield.

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