Published: Tue, May 22, 2018
Electronics | By Kelly Massey

AGL rejects Alinta's $250m bid to buy Liddell Power Station

AGL rejects Alinta's $250m bid to buy Liddell Power Station

"Alinta Energy has. submitted a non-binding offer for the Liddell power station to AGL, which we believe represents a compelling commercial proposition for AGL shareholders", Alinta said in an email to Reuters.

AGL has completed its assessment and has told the bidders that it will not proceed with the offer.

AGL energy has rejected an offer from rival power company Alinta Energy to buy the ageing Liddell power station.

"Last year AGL made a commitment to us that there would be no forced redundancies of the Liddell workers, and we are pleased they are continuing with these plans", CFMEU Mining and Energy Division National President Tony Maher said.

Airline passenger accused of punching deaf pregnant woman, service dog
None of those involved in the incident wanted to get medical assistance and they were later questioned by responding officers. Hazel Ramirez and Matthew Slivay, who are deaf, were on the flight to Orlando with their two kids and the dog.

AGL shares are now trading at 13x FY19's estimated earnings, which seems very reasonable. The rise of electricity prices is good in the short-term, but encourages more people to solar power in the long-term.

Conservative Coalition backbenchers pounced on AGL's decision.

Abbott repeated his demand that the government compulsorily acquire Liddell. Some of AGL's key officials have stated that the offer undervalued the future cash flows that the firm expected to accrue through Liddell coal-fired power plant till 2022, after which the company plans to shut down the power unit. He was even found to have reiterated what Rod Sims, the Australian Competition and Consumer Commission (ACCC) - Sims apparently was of the view Liddell's purchase by Alinta will lower the electricity costs as well as reduce the competition.

"While the government recognises AGL has put forward a replacement plan, it has only financially committed to a fraction of the projects - namely, a 100MW upgrade to its existing coal-fired Bayswater power plant and a 250MW gas peaking plant".

Like this: