Why the Ausnet (ASX:AST) share price has surged 32% in September

Shares in the electricity transmission network provider are on fire this month

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

The Ausnet Services Ltd (ASX: AST) share price has been one of the top performers in the S&P/ASX 200 Index (ASX: XJO) in September. Shares in the Aussie electricity transmission network provider have rocketed 32% higher so far this month.

Let's take a look at what's driving the energy infrastructure group's valuation to new heights right now.

A female superhero dressed in shiny green with a mask leaps in the sky with leg and arm outstretched in a leaping action.

Image source: Getty Images

Why the Ausnet share price has surged 32% in September

Prior to this month, shares in the Aussie company had largely traded between $1.60 and $2 per share for most of the year. However, that all changed on Monday 20 September.

The Ausnet share price rocketed 19.2% higher in the space of one day. The reason? A juicy takeover offer from the world's largest alternative asset manager, Brookfield Asset Management.

Brookfield and associated entities lobbed an offer to acquire 100% of Ausnet shares for $2.50 per share. That represented a 26% premium to Ausnet's closing price on Friday 17 September and a 35% premium to its 30-day weighted average share price.

The unsolicited, indicative, non-binding and conditional proposal sent the Ausnet share price soaring. The revised proposal followed previous bids from Brookfield at $2.35 per share and $2.45 per share.

Ausnet's market capitalisation has swelled to $9.80 billion following the recent takeover bids. It was pushed even higher when news broke of APA Group's (ASX: APA) interest.

The rival electricity distributor one-upped Brookfield's bid with a $2.60 per share conditional offer of its own. The ensuing bidding war between the two groups, including complaints from APA about an exclusivity agreement between Ausnet and Brookfield, has pushed the Ausnet share price higher in September.

Shares in the network infrastructure group have been soaring higher and amongst the ASX 200's top performers this month.

Motley Fool contributor Ken Hall 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 owns shares of and has recommended APA Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Energy Shares

Two people wearing hard hats talking with each other at a mine site, with two workers in the background.
Energy Shares

Uranium is back. Three ASX shares that give you exposure

One clean producer, two turnaround bets.

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.
Energy Shares

Santos shares on watch after major Papua LNG deal

Investors have another reason to watch this ASX 200 energy stock today.

Read more »

An oil refinery worker stands in front of an oil rig with his arms crossed and a smile on his face.
Energy Shares

How Woodside shares are building a 'unique position' to supply global LNG markets

Woodside shares are growing their exposure to global LNG markets.

Read more »

Oil industry worker in an oil field.
Energy Shares

These 2 ASX energy shares have 18-31% upside according to Bell Potter

These energy stocks are top buys.

Read more »

Engineer in the oilfield wearing red helmet and work clothes, with pumpjack and wellhead in the background.
Energy Shares

Buying Santos shares? Here's why the company is celebrating this production milestone

Santos shares are turning heads on Thursday. But why?

Read more »

Piles of increasing coins alongside an hourglass.
Energy Shares

$1,000 buys 91 shares in an impressively reliable ASX dividend stock

This business has an incredible history of consistent payout growth.

Read more »

An oil worker assesses productivity at an oil rig.
Energy Shares

Santos versus Woodside shares: Which ASX energy stock outperformed in August?

Santos and Woodside both reported half-year results in August. But which ASX energy stock outperformed?

Read more »

Oil industry worker climbing up metal construction and smiling.
Energy Shares

Santos shares rebound 8% in a month: Buy, sell or hold?

The ASX energy shares are up around 35% for the year-to-date.

Read more »