Australian power operator AusNet to enter takeover talks

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Australian power operator AusNet to enter takeover talks

the company announced Tuesday that Australian power management and distribution assets could enter takeover talks after Brookfield Asset Management Inc. made an approach valuing the company at about $ 9.6 billion (7 billion) Melbourne-based AusNet, which serves about 1.5 million customers in southeastern Victoria state, has contacted its two largest holders Singapore Power International Pte and State Grid Corp. of China. AusNet shares surged as much as 22% to $2.42 in Sydney to reach A 2.22 in Ausnet (Shanghai).

Brookfield's indicative offer of A $2.50 cash per share is a 17% premium to AusNet's closing price on Friday, according the target. The parties will carry out due diligence and have agreed to negotiate on an exclusive basis for at least seven weeks.

The prospective deal follows a spate of M&A activity for infrastructure assets in Australia, including Sydney toll roads and the energy company Spark Infrastructure Group and Sydney Airport.

As the incumbent primary Victorian transmission network owner, AusNet is uniquely positioned for growth as the global decarbonization of energy transition accelerates, AusNet said in its statement.