AGL Energy (AGK) has declared its off-market takeover bid for Australian Power & Gas (APK) unconditional and further increased its stake in the takeover target for the second time this week, edging closer to the compulsory acquisition threshold of 90%.
In a statement the Australian Securities Exchange, the energy giant said its offer of 52 cents per share was free of conditions and encouraged APG shareholders to accept its proposal.
In a separate statement, the company noted it had lifted its stake in APG a further 3.52% to 87.89 per cent.
AGL is offering 52 cents for every APG share, a 51% premium to the 90-day volume weighted average price of APG shares and a 33% premium to their closing price at the last trading day prior to the. It has also taken the offer to APG shareholders on-market.
AGL said APG’s board unanimously recommended its shareholders accept the offer, which expires on October 11.
AGL has moved swiftly following the Australian Competition and Consumer Commission's approval of its takeover bid, lifting its voting power in the second-tier energy player to 75 per cent last week, and again to 84.37% yesterday.
The group exercised its majority voting rights this week to gain effective control of APG when it installed three of its senior executives on APG's board, including chief financial officer Brett Redman, company secretary Paul McWilliams and head of capital markets John Hobson.
APG's chief executive officer James Myatt has also stepped down, with chief financial officer Warren Kember acting as interim CEO.