Rival power company Alinta Energy says it’s made a non-binding offer for AGL’s aging Liddell power station in NSW.
The company issued a statement saying: “We can confirm Alinta Energy has fulfilled our commitment and submitted a non-binding offer for the Liddell power station to AGL, which we believe represents a compelling commercial proposition for AGL shareholders, but we won’t be in a position to comment further until AGL has considered the offer and responded.”
The deal offered includes $250 million for the plant as part of what is believed to be worth a $1 billion in both acquisition and capital investments costs.
But AGL issued its own statement saying the offer was “highly conditional”.
AGL Energy Limited confirms that this morning it received a non-binding, highly conditional indicative offer from Chow Tai Fook Enterprises (CTFE) and Alinta Energy Pty Limited (Alinta) to acquire the Liddell Power Station, associated assets and the related site for cash consideration payable to AGL of $250 million.
AGL is assessing the proposal. No assurance can be given that any transaction will result from the offer. AGL will provide further updates to the market as appropriate.
AGL has not sought to sell the Liddell Power Station, as it requires Liddell to provide energy to its customers until 2022 and for repurposing as part of its NSW Generation Plan post 2022.
Earlier this month, it emerged that Alinta, the Western Australian energy retailer bought last year by the Hong Kong based family-owned company Chow Tai Fook Enterprises (CTFE), had been in discussions with Prime Minister Malcolm Turnbull and energy minister Josh Frydenberg over buying the Hunter Valley coal-fired power station, which AGL is planning to close in 2022.
The government wants to keep the 45-year-old plant open for at least another five years amid concerns of an electricity supply shortfall when it closes.
Late last year, CTFE signed a deal to acquire the 1,000 megawatt Loy Yang B power station in Victoria’s Latrobe Valley from French giant Engie.
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