AGL Energy Ltd receive $250 million offer for Liddell from Alinta Energy

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.

Top 3 ASX Blue Chips To Buy In 2018

For many, blue chip stocks mean stability, profitability and regular dividends, often fully franked..

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool’s in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool’s Top 3 Blue Chip Stocks for 2018."

Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.

The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand – and how quickly the share prices of these companies moves – we may be forced to remove this report.

Click here to claim your free report.

Motley Fool contributor Kevin Gandiya has no position in any of the stocks mentioned.

You can follow Kevin on Twitter @KevinGandiya.

The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.