Energy company AGL has knocked back an unsolicited offer for its ageing Liddell coal-fired power plant in the New South Wales Hunter Valley.
Alinta, and its Hong Kong-based parent company Chow Tai Fook, made an offer for the plant of $250 million last month.
Alinta said it would also invest in upgrading the facility, believed to take the total spend to around $1 billion.
In a statement to the sharemarket, AGL said it would not accept the offer.
“AGL has completed a thorough assessment of the offer and, after careful consideration, has advised Chow Tai Fook and Alinta that it will not proceed any further with the offer,” the statement said.
“The AGL Board has determined that the offer is not in the best interests of AGL or its shareholders.
“The offer significantly undervalues future cash flows to AGL of operation the Liddell Power Station until 2022 and the repurposing of the site thereafter.”
The Turnbull Government has been pressuring AGL to keep the plant open beyond its scheduled closure date of 2022, or sell the facility.
“AGL has reaffirmed its decision to close Liddell in December 2022,” the company told the sharemarket.
Alinta has been contacted for comment.
More to come.