Less than a week after getting exclusive access to Vocus Communications’ books to conduct due diligence, AGL Energy has pulled out of a proposed $3 billion takeover.
The company had four weeks to look over the business as part of a non-binding proposal to acquire it, but have apparently come to a quick decision, announcing this morning it won’t proceed with the takeover.
Shares in Vocus have been hit hard in early trade this morning, falling more than 30 per cent off the back of the announcement and at one point dipping under $3, well below the $4.85 offered in the AGL proposal.
Vocus CEO Kevin Russell remained more optimistic than the market, seeking to assure existing shareholders the company will deliver value in the “medium to long term”.
“As we have repeatedly said, this is a three year turnaround,” Mr Russell said.
“There is growing demand for our strategically valuable network assets and we have a substantial opportunity to gain market share.”
He said AGL’s withdrawal will allow the Vocus management team to focus all of their attention on “realising the opportunity we have ahead of us”.
