Vocus Group has received a non-binding, indicative proposal from AGL Energy, valued at A$3 billion, to acquire all of the shares in the telco at a price of A$4.85 per share in cash  to be implemented by way of a scheme of arrangement.
The Indicative Proposal follows Vocus’ announcement on 4 June 2019 that it had ceased discussions with EQT Infrastructure and AGL’s announcement on 31 May 2019 that AGL had previously been unable to agree due diligence terms with Vocus.
“After last week’s announcement that discussions with EQT Infrastructure had ceased, AGL returned with a non-binding and indicative proposal to acquire Vocus for $4.85 per share,” said Vocus MD and CEO Kevin Russell. “There is a clear market opportunity for Vocus, which is generating significant interest in our business and our assets. We are focused on executing our turnaround strategy and delivering the opportunity in front of us. However, we have been clear that the Board will always act in the best interests of our shareholders to engage with credible parties that bring forward proposals that are worthy of further consideration.”
The Indicative Proposal is subject to a number of conditions, including completion of a four week period of exclusive due diligence to AGL’s satisfaction; unanimous recommendation from the Vocus Board; and entry into a mutually acceptable scheme implementation agreement. Any scheme implementation agreement would also be subject to a number of further conditions, including shareholder, court and regulatory approvals.
“As we progress through the AGL due diligence process, we will ensure that it is conducted efficiently and causes the minimum level of disruption to our business,” added Russell.