AGL Energy Ltd (ASX: AGL) has announced that it has received a non-binding, highly conditional $250 million offer to acquire the Liddell coal-fired power station.
The offer was made by Alinta Energy and Hong Kong-based conglomerate, Chow Tai Fook enterprises.
While the AFR quoted an Alinta spokesman as saying that the bid was "compelling" for AGL shareholders, AGL were quick to cool any excitement. AGL said they were assessing the proposal and no assurances could be given that any transaction will result from the offer.
The government will certainly hope that a transaction goes through to keep Liddell open beyond 2022 and ease fears of a power supply shortage.
The announcement had little impact on AGL and competitor Origin Energy Ltd's (ASX: ORG) shares, which were up marginally.
I think there will be more posturing before this issue is resolved so shareholders should wait and see how it plays out.
