AGL share price lifts as Brookfield caught buying

It's been a rollercoaster day so far for the ASX energy giant. Here's why.

| More on:
busy trader on the phone in front of board depicting asx share price risers and fallers

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • The AGL share price returned to the green after a poor start to Thursday's session
  • It comes on news an entity apparently controlled by Brookfield Asset Management has snapped up a 2.5% stake in AGL
  • Brookfield was part of a consortium that proposed to acquire the energy giant for $8.25 per share earlier this year

The AGL Energy Limited (ASX: AGL) share price performed a U-turn this morning. Its return to the green came on the back of news an entity that previously aimed to acquire the energy giant appears to have snapped up a notable stake.

At the time of writing, the AGL share price is $8.44, 0.54% higher than its previous close, having been deep in the red in early trading.

For context, the S&P/ASX 200 Index (ASX: XJO) is down 0.59% right now while the All Ordinaries Index (ASX: XAO) has slipped 0.58%.

Let's take a closer look at what's going on with AGL on Thursday.

What's driving the AGL share price today?

The AGL share price is launching higher despite the market's continued downturn this morning.

It comes after the energy producer and retailer announced it appears to have caught Brookfield Asset Management buying into the company, snapping up a 2.56% stake in AGL under an apparent subsidiary.

Brookfield was part of a consortium offering AGL $8.25 per share to take over the energy provider earlier this year.

AGL told the market this morning an entity named Australian 123456789 4 Pty Limited had acquired around 17.2 million shares in AGL as of 24 June.

The company subsequently performed an ASIC search, finding the generically named entity looks to be a subsidiary of Brookfield. AGL continued:

AGL became aware of this information through routine registry analysis responses, and therefore the information is historical. It is possible that subsequent trading may have altered the position.

AGL has not received any updated acquisition proposal from Brookfield.

AGL rejected the offer posted by the Brookfield Consortium in March. The consortium was made up of Brookfield and Mike Cannon-Brookes' Grok Ventures.

Of course, market watchers will likely remember Cannon-Brookes snapped up a majority hold in the company and mounted a campaign against its now-scrapped demerger plan in May.

The AGL share price has gained a notable 34% since the start of 2022. It's also 3% higher than it was this time last year.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Energy Shares

A young woman carefully adds a rock to the top of a pile of balanced river rocks.
Share Market News

Here's how the ASX 200 market sectors stacked up last week

Energy and utilities stocks led the way last week with 4%-plus gains.

Read more »

A male oil and gas mechanic wearing a white hardhat walks along a steel platform above a series of gas pipes in a gas plant
Dividend Investing

Should I buy Santos shares for dividend income?

Santos shares have been steadily upping their dividends since 2020.

Read more »

Focused man entrepreneur with glasses working, looking at laptop screen thinking about something intently while sitting in the office.
Energy Shares

Are Santos shares a screaming buy?

Goldman Sachs thinks now could be a good time to buy this energy stock.

Read more »

A young woman lifts her red glasses with one hand as she takes a closer look at news about interest rates rising and one expert's surprising recommendation as to which ASX shares to buy
Energy Shares

What is getting investors excited about this ASX 200 uranium stock today?

There's a good reason why this share is charging higher on Wednesday.

Read more »

Businessman studying a high technology holographic stock market chart.
Energy Shares

Is this stock the 'best placed' of the ASX uranium shares?

This fund manager thinks so.

Read more »

Worker on a laptop at an oil and gas pipeline.
Energy Shares

Why today is a big day for Santos shares

Why is everyone talking about Santos shares today?

Read more »

A man has a surprised and relieved expression on his face. as he raises his hands up to his face in response to the high fluctuations in the Galileo share price today
Energy Shares

This ASX 200 mining stock just reported a 40% earnings jump

Investors appear pleased with this miner's performance during the first quarter.

Read more »

A man sits in deep thought with a pen held to his lips as he ponders his computer screen with a laptop open next to him on his desk in a home office environment.
Energy Shares

Are beaten down Paladin Energy shares a bargain buy?

Bell Potter thinks this beaten down uranium stock could be worth picking up.

Read more »