AGL Energy Ltd has made an off-market bid for control of upstart energy retailer Australian Power & Gas Company Ltd, striking a deal with its rival's board to increase its holding in the group by 57%, valuing the target at $158 million.
APG's board has entered a bid implementation agreement with AGL, which would see the suitor pay 52 cents per share for a 19.9% stake in the company from APG's three major shareholders, Nippon Gas, The Cobra Group and The Poole Interests.
The three shareholders have also indicated they will sell their remaining combined 36.9% stake in the retailer to AGL (see Cliona O'Dowd's Collected Wisdom).
The bid price represents a 33% premium to APG's closing share price on Friday of 39c, valuing the company at $158 million.
The board's support is conditional on approval from an independent expert.
The deal is subject to ACCC approval and "will be subject to AGL holding at least 90% of the APG shares by the end of the share offer".
APG was founded in 2007 by Jim Myatt as a "challenger" brand and has a presence in New South Wales, Queensland and Victoria.
