Brookfield Renewable (NYSE: BEP, BEPC; TSX: BEP.UN, BEPC) together
with its institutional partners and GROK Ventures (collectively,
the “Consortium”) announced today its participation in a
privatization proposal in respect of AGL Energy Limited (“AGL” or
the “Company”), the largest integrated power generation and energy
retailer in Australia. The Consortium’s proposal which is subject
to due diligence as well as other conditions, is at a price of
A$7.50/share which values AGL at an equity value of A$5 billion.
It is estimated that over US$150 trillion will
need to be invested globally through 2050 to drive the
decarbonization of energy systems and the global economy. The
Consortium has access to capital, and deep operating expertise,
particularly in power markets and renewables. With these
capabilities and a proven track record, we believe the Consortium
is uniquely positioned to execute on a transition-focused business
plan that would accelerate the decommissioning of existing thermal
assets and build out new clean generation to the benefit of all
stakeholders including existing shareholders and local energy
consumers.
The Consortium plans to execute on a plan that
will require approximately A$20 billion of capital to facilitate
the transition of AGL’s generation fleet consistent with the 1.5
degree decarbonization scenario, replacing 7 GW of thermal assets
through a build-out of at least 8 GW of clean energy and storage,
and we will provide regular reporting to demonstrate progress
against our stated targets. In doing so, the Consortium can ensure
this proud Australian company has a future in a net-zero world. The
plan envisions a vertically integrated energy business that can
deliver a transition to net zero, and significant investment in
decarbonization creating sustainable regional economic development,
enhanced network reliability and local employment.
The proposed privatization is consistent with
Brookfield’s transition strategy of investing in opportunities
where we can generate a meaningful contribution to net zero. The
capabilities of Brookfield Renewable will also be critical to
ensure a responsible and sustainable transition for AGL, that will
see increasingly clean power delivered at competitive prices to
AGL’s customers. It is a landmark transaction for Grok, which has
stated an intention to invest to combat climate change.
Brookfield will pursue this transaction through
the Brookfield Global Transition Fund I, which is the largest fund
in the world focused on the energy transition, with Brookfield
Renewable participating as the largest investor.
The proposal is expected to be pursued through a
scheme of arrangement, and in addition to a due diligence
condition, is subject to shareholder, regulatory and Board
approvals. Regulatory approvals include Australian Competition
& Consumer Commission (ACCC) merger clearance, and the Foreign
Investment Review Board (FIRB). Brookfield Renewable notes the
statement today of the AGL Board of Directors rejecting the
Consortium’s proposal with disappointment.
“By combining our access to capital and clean
energy expertise, we are capable of helping carbon-intensive
businesses transition to more competitive and sustainable futures
while making a meaningful contribution to the transition to net
zero,” said Connor Teskey, CEO of Brookfield Renewable. “By helping
businesses such as AGL achieve their net-zero ambitions through the
significant build out of clean energy capacity, we can contribute
tangible benefits to stakeholders including net-zero GHG emissions,
clean power delivered at competitive prices and new jobs in the
green economy, all while generating strong returns for our
unitholders.”
Mike Cannon-Brookes, Grok Ventures, said: “This
proposal will mean cheaper, cleaner and more reliable energy for
customers. It will create over 10,000 Australian jobs and ensure
customers don't bear the brunt of higher power prices – a likely
scenario if the proposed demerger happens. AGL accounts for over 8%
of Australia's emissions: more than the current emissions of
Australian domestic and international aviation combined, or every
car on the road in Australia. As a country, it emits more than
Sweden, Ireland or New Zealand. If successful, this will be one of
the biggest decarbonisation projects in the world today and show
Australia is capable of globally significant projects.”
The Consortium sent its proposal to AGL on
February 19th by means of a letter which is available on Brookfield
Renewable’s website at www.bep.brookfield.com.
Brookfield Renewable
Brookfield Renewable operates one of the world’s
largest publicly traded, pure-play renewable power platforms. Our
portfolio consists of hydroelectric, wind, solar and storage
facilities in North America, South America, Europe and Asia, and
totals approximately 21,000 megawatts of installed capacity and an
approximately 62,000-megawatt development pipeline. Investors can
access our portfolio either through Brookfield Renewable Partners
L.P. (NYSE: BEP; TSX: BEP.UN), a Bermuda-based limited partnership,
or Brookfield Renewable Corporation (NYSE, TSX: BEPC), a Canadian
corporation. Further information is available
at www.bep.brookfield.com and www.bep.brookfield.com/bepc.
Important information may be disseminated exclusively via the
website; investors should consult the site to access this
information.
Brookfield Renewable is the flagship listed
renewable power company of Brookfield Asset Management, a leading
global alternative asset manager with approximately US$690 billion
of assets under management.
Contact information: |
|
Media: |
Investors: |
Kerrie McHugh |
Robin Kooyman |
Senior Vice President – Corporate
Communications |
Senior Vice President – Investor Relations |
(212) 618-3469 |
(416) 649-8172 |
kerrie.mchugh@brookfield.com |
robin.kooyman@brookfield.com |
Cautionary Statement Regarding
Forward-looking Statements
This news release does not constitute an offer
to sell or the solicitation of an offer to buy any securities or a
solicitation of any vote or approval, nor shall there be any sale
of securities in any jurisdiction in which such offer, solicitation
or sale would be unlawful prior to registration or qualification
under the securities law of such jurisdiction. No securities
regulatory authority has either approved or disapproved the
contents of this communication.
This news release contains forward-looking
statements and information within the meaning of applicable
securities laws. Forward-looking statements may include estimates,
plans, expectations, opinions, forecasts, projections, guidance or
other statements that are not statements of fact. Forward-looking
statements can be identified by the use of words such as “will”,
“believe”, “may”, “plan”, “expected”, “growth”, “approximately”,
“intend”, “potential”, “can” or the negative version of these words
or other variations or comparable of such words and phrases.
Forward-looking statements in this news release include statements
regarding the parties’ future expectations, beliefs, plans,
objectives, assumptions or future events or performance, including
with respect to the transaction, the Consortium’s transition and
business plans for AGL, the development of additional renewable
power and storage assets, the prospects and benefits of a
privatized company and any other forward-looking statements or
information in this news release. Although Brookfield Renewable
believes that such forward-looking statements and information are
based upon reasonable assumptions and expectations, no assurance is
given that such expectations will prove to have been correct. The
reader should not place undue reliance on forward-looking
statements and information as such statements and information
involve known and unknown risks, uncertainties and other factors,
including uncertainties as to whether the transaction is submitted
to a shareholder vote, whether shareholders approve the
transaction, whether the conditions to the transaction will be
satisfied, including securing applicable regulatory approvals, the
timing of the transaction, and the ability of the parties to
realize the expected benefits of a privatization, which may cause
the actual results, performance or achievements of Brookfield
Renewable to differ materially from anticipated future results,
performance or achievement expressed or implied by such
forward-looking statements and information. For further information
on these known and unknown risks and other applicable risks and
factors, please see the “Risk Factors” included in the Form 20-F of
Brookfield Renewable Partners L.P. and Brookfield Renewable
Corporation.
The foregoing list of important factors that may
affect future results is not exhaustive. Except as required by law,
Brookfield Renewable does not undertake any obligation to publicly
update or revise any forward-looking statements or information,
whether written or oral, whether as a result of new information,
future events or otherwise.
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