AGL Eyes Vocus
AGL Energy Limited (AGL) has been granted exclusive access to conduct due diligence on Vocus for a period of four weeks after submitting a non-binding, indicative proposal to acquire Australia-based telco operator.
The indicative proposal follows AGL’s announcement that it had previously been unable to agree due diligence terms with Vocus and Vocus’ announcement that EQT had ceased undertaking due diligence and withdrawn its indicative proposal for Vocus.
AGL believes acquiring Vocus may be an optimal way of executing strategy to meet the needs of increasingly connected customers as energy and data value streams converge and the traditional energy sector transforms – and aligned with AGL’s capabilities in integrating and managing complex assets and customer portfolios.
AGL continues to assess the funding of any transaction but intends to utilise existing cash and new debt facilities, subject to the maintenance of its Baa2 credit rating. AGL’s initial assessment is that a transaction on this basis would be accretive to AGL’s earnings per share in the first 12 months post acquisition.
Discussions between AGL and Vocus are incomplete and there is no certainty they will lead to a binding agreement.