AGL made, withdrew Vocus takeover proposal

AGL withdrew a non-binding takeover offer for Vocus after failing to agree to due diligence terms with the internet provider, which has since become a $3.3 billion target a Swedish private equity firm.

The owner of the iPrimus and Dodo brands this week granted non-exclusive due diligence access to EQT Infrastructure, which indicates AGL may have been seeking exclusive access to its books.

“AGL recently contacted Vocus with a confidential, non-binding indicative offer, seeking access to due diligence materials so AGL could determine whether to make a binding offer for Vocus,” AGL said in a statement on Friday.

“AGL has now withdrawn this non-binding indicative offer after being unable to agree due diligence terms that were acceptable.”

The power generator and retailer added that it will continue to look for opportunities to “meet the needs of increasingly connected customers as energy and data value streams continue to converge”.

Vocus this week said Stockholm-based private equity firm EQT had made a non-binding indicative proposal of $5.25 for each share in Australia’s fourth largest telecommunications provider.

The offer represented a 35 per cent premium to the stock’s $3.89 valuation before the start of trade and sent the shares surging to a two-and-a-half year high of $4.90.


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