find the latest legal job
Senior Associate - Litigation & Dispute Resolution
Category: Litigation and Dispute Resolution | Location: Melbourne CBD & Inner Suburbs Melbourne VIC
· Come work for a firm ranked in Lawyers Weekly Top 25 Attraction Firms
View details
Associate - Workplace Relations & Safety
Category: Industrial Relations and Employment Law | Location: Brisbane CBD & Inner Suburbs Brisbane QLD
· Employer of choice · Strong team culture
View details
Freelance Lawyers
Category: Banking and Finance Law | Location: All Perth WA
· Freelance opportunities through Vario from Pinsent Masons
View details
Freelance Lawyers
Category: Other | Location: All Adelaide SA
· • Qualified lawyer with a strong academic background
View details
Freelance Lawyers
Category: Other | Location: All Melbourne VIC
· • Qualified lawyer with a strong academic background
View details
AGL and Alinta come to the table

AGL and Alinta come to the table

Lawyers advising Alinta and AGL on their recent merger proposals and takeover bids could have been forgiven at certain points for not knowing if they were coming or going. The cross bids that…

Lawyers advising Alinta and AGL on their recent merger proposals and takeover bids could have been forgiven at certain points for not knowing if they were coming or going. The cross bids that formed one element of the transaction meant the lawyers for both parties were preparing bidder and target statements at the same time.

Alinta was advised by Blake Dawson Waldron, led by Marie McDonald, and AGL by Gilbert + Tobin, led by Gary Lawler and Philip Breden.

The hostile bid, which was launched by Alinta in February, with a $1.8 billion market raid to gain control of 19 per cent of AGL, came to an amicable end last week with the signing of a binding heads of agreement to merge the companies’ respective infrastructure businesses.

AGL’s energy business will be wholly owned by the existing AGL shareholders and will consist of AGL’s current energy assets as well as a 33 per cent interest in Alinta’s Western Australia retail and cogeneration business for $367 million. AGL’s energy business has the right to acquire the remaining 67 per cent over a five year period.

The enlarged Alinta will be 55 per cent owned by Alinta’s current shareholders and 45 per cent by former AGL shareholders. Alinta will acquire AGL’s infrastructure assets and asset management business (Agility) for $6.45 billion.

McDonald said the firm had been working with Alinta over a year, advising on a possible merger of the two companies. Their plans were thwarted by AGL’s announcement that it was going to demerge its infrastructure and energy businesses, which prompted the market raid and prevented AGL from following through on its plans.

“It was unusual to have a market raid like that, and it was probably the biggest market raid in Australia’s history. That changed the dynamics because AGL could not go ahead with the demerger,” McDonald said. Alinta then proposed a merger of the two companies followed by a demerger into separate energy and infrastructure businesses, but this was rejected by AGL, which made its own takeover bid for Alinta.

McDonald believes this transaction was the first in Australia to feature two cross bids. She says the deal featured a number of difficult legal issues, as well as complicated processes, such as having two teams of lawyers simultaneously preparing bidder and target statements. “It is certainly a very interesting deal and there were those novel issues that no-one has had to grapple with before.

McDonald said Blakes’ team worked closely with Alinta’s general counsel, Murray King, on the matter.

Like this story? Read more:

QLS condemns actions of disgraced lawyer as ‘stain on the profession’

NSW proposes big justice reforms to target risk of reoffending

The legal budget breakdown 2017

AGL and Alinta come to the table
lawyersweekly logo
Promoted content
Recommended by Spike Native Network
more from lawyers weekly
Scales of Justice, ALA, right-to-die law
Oct 24 2017
‘Right-to-die’ laws would be a relief for terminally ill: ALA
The passage of an assisted dying bill through the lower house of Victorian Parliament has been haile...
Oct 24 2017
Diversity top of agenda for future WA Law Society president
The advancement of diversity in the Western Australian legal profession will be one of the key items...
Oct 23 2017
How to fail well
The legal profession is due for an attitude adjustment when it comes to perceived failures, accordin...
Allens managing partner Richard Spurio, image courtesy Allens' website
Jun 21 2017
Promo season at Allens
A group of lawyers at Allens have received promotions across its PNG and Australian offices. ...
May 11 2017
Partner exits for in-house role
A Victorian lawyer has left the partnership of a national firm to start a new gig with state governm...
Esteban Gomez
May 11 2017
National firm recruits ‘major asset’
A national law firm has announced it has appointed a new corporate partner who brings over 15 years'...
Nicole Rich
May 16 2017
Access to justice for young transgender Australians
Reform is looming for the process that young transgender Australians and their families must current...
Geoff Roberson
May 11 2017
The lighter side of the law: when law and comedy collide
On the face of it, there doesn’t seem to be much that is amusing about the law, writes Geoff Rober...
May 10 2017
Advocate’s immunity – without fear or without favour but not both
On 29 March 2017, the High Court handed down its decision in David Kendirjian v Eugene Lepore & ...