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MELBOURNE - Queensland Gas Company Ltd has received a sweetened offer from AGL Energy Ltd, after getting an A$812 ($931.19) million offer from US investment firm TCW Group.
AGL is upping its offer for QGC shares by 16 cents to A$1.60 ($1.83) per QGC share to take a 27.5 per cent investment in the coal seam gas provider.
This will increase AGL's payout to A$327 ($375.00) million.
Under the previous deal announced in December, AGL planned to take the 27.5 per cent stake through a share placement by QGC to AGL at A$1.44 ($1.65) per share, for a cash outlay of up to A$292 ($334.86) million.
"Our decision to increase the offer price for QGC shares comes after the company's announcement yesterday that it had upgraded its share of ... reserves by 27.5 per cent," AGL managing director Paul Anthony said.
"What's more, the transaction remains a perfect fit with our recent acquisitions of Sun Gas and Powerdirect in Queensland."
AGL has also proposed that QGC conduct a tender buyback of shares of at least A$1.52 ($1.74) each.
It is also going to do a tender buyback of at least A$1.52 per share.
QGC today recommended the new AGL deal, saying it rejected a scrip and cash offer from TCW.
The new offer will be put to QGC shareholders at its general meeting scheduled in Brisbane today.
- AAP
