AGL Energy Limited has decided to cease undertaking due diligence on Vocus Group Limited and withdraw its non-binding, indicative proposal.
On Monday 17 June, it was revealed that AGL made a tentative offer to acquire the telco.
AGL Managing Director & CEO, Brett Redman, said AGL is exploring investment opportunities across three focus areas: optimising its existing portfolio for performance and value, evolving and expanding its core energy markets offerings, and creating new opportunities with connected customers.
“We believe there will be material opportunities for AGL as energy and data value streams continue to converge, and the traditional energy sector accelerates its transformation,” Mr Redman said.
“The approach to Vocus reflected our view that the Vocus asset base has attributes that could support the execution of this strategy and benefit our customers. However, we are no longer confident that an acquisition of Vocus at the proposed terms would represent sufficient certainty of creating value for AGL shareholders.
“We would like to thank the Vocus board and management team for their assistance over recent weeks.”