Savvy investors have taken advantage of the interest in Vocus Group Limited, with the share price rising by just over 12 per cent today on news of a possible takeover bid from AGL.
AGL announced that it has been granted exclusive access to conduct due diligence on Vocus Group Limited for a period of four weeks after submitting a non-binding proposal to acquire Vocus at $4.85 per share.
With this, the share price of Vocus has risen from $3.82 a share to a high point of $4.34 per share.
This follows EQT Infrastructures withdrawing its acquisition proposal.
Vocus managing director and CEO Kevin Russell said in a statement to the ASX: “There is a clear market opportunity for Vocus, which is generating significant interest in our business and our assets. We are focused on executing our turnaround strategy and delivering the opportunity in front of us.
“However, we have been clear that the board will always act in the best interests of our shareholders to engage with credible parties that bring forward proposals that are worthy of further consideration,” Mr Russell said.
AGL believes that the acquisition of Vocus will help with its strategy to meet the needs of increasingly connected customers as energy and data value streams converge and the traditional energy sector changes.
Discussions between AGL and Vocus are incomplete at this stage and there is no binding agreement, with any binding transaction subject to due diligence and negotiations between the two companies.
Cameron Micallef is a journalist at Nest Egg, writing primarily about personal wealth and economic markets.
Prior to this, Cameron worked for Australian Associated Press. He graduated from the University of Wollongong with a double degree in communications and commerce.