AusNet is a producer and distributor of electricity and gas. AusNet operates through Electricity Distribution, Gas Distribution, Electricity Transmission, and Growth & Future Networks segments.
The Electricity Distribution segment carries electricity from the high voltage transmission network to end users. The Gas Distribution segment handles the natural gas to commercial and residential end users. The Electricity Transmission segment owns and manages the vast majority of the electricity transmission network in Victoria. The Growth and Future Networks segment provides contracted infrastructure asset and energy services.
The AST share price surged by 19% today and it was the best performer on the ASX as the company announced that it has received a takeover offer. AST recieved an unsolicited, indicative, non-binding and conditional proposal from the infrastructure affiliate of Brookfield Asset Management. The offer is to acquire, by way of scheme of arrangement, all of the issued shares in AusNet at an indicative price of $2.50 cash per share.
The indicative offer price of $2.501 cash per share represents a premium of:
- 26% to AusNet’s closing price on 17 September 2021 of $1.98
- 28% to the 30 day volume weighted average price of AusNet shares prior to 17 September 2021 of $1.95
- 35% to the 90 day volume weighted average price of AusNet shares prior to 17 September 2021 of $1.85
The Indicative Proposal is subject to several conditions. Due diligence, FIRB approval, unanimous support and recommendation by the Board of AusNet, and execution of a scheme implementation deed are all required.
Following the offer, the AusNet board has decided to provide Brookfield with the opportunity to conduct due diligence and enable them to put forward a binding offer. Thus, AusNet and Brookfield have entered into a confidentiality deed. This provides Brookfield to conduct due diligence and for the parties to negotiate a scheme implementation deed on an exclusive basis.
AST shares surged 19.19% and closed at $2.36 a share – an all time high for the AST share price.