- AGL said the $250 million cash offer “significantly undervalues” the Liddell power station.
- The energy retailer reaffirmed its plans to close Liddell in 2022.
AGL energy has rejected an offer from rival power company Alinta Energy to buy the ageing Liddell power station.
In a statement to the ASX, AGL said the non-binding offer undervalues Liddell and also reaffirmed that it plans to close the power station in 2022.
“The AGL Board has reminder that the Offer is not in the best interests of AGL or its shareholders,” AGL said.
“The Offer significantly undervalues futures cash flows to AGL of operating the Liddell Power Station until 2022 and the re-purposing of the site thereafter.”
In April, WA-based energy retailer Alinta — now owned by Hong Kong based family-owned company Chow Tai Fook Enterprises (CTFE) — made a conditional offer to buy Liddell for $250 million in cash.
That followed reports of discussions between Alinta and the federal government, which wants to keep Liddell open beyond 2022 citing concerns about a supply shortfall.
But in rejecting the offer this morning, AGL said its plan to re-purpose the ageing coal-fired power station will address any capacity shortfalls. AGL said the plan had been approved by the Australian Energy Market Operator (AEMO).
“In considering the Offer, AGL sought external expert advice on matters relevant to the Offer, including the capital expenditure requirements across all plant components and the reliability and safety profile of the ageing power station,” AGL said.
“Consequently, AGL has reaffirmed its decision to close Liddell in December 2022 and will continue progressing its NSW Generation Plan, which includes re-purposing Liddell.”
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