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.
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.
The post Why the Ausnet (ASX:AST) share price has surged 32% in September appeared first on The Motley Fool Australia.
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More reading
- These were the best performers on the ASX 200 last week
- Why the embattled AGL (ASX:AGL) share price is surging higher today
- APA Group (ASX:APA) share price jumps on strong support for its takeover bid
- Why the Transurban (ASX:TCL) share price just got upgraded by a leading broker
- Why Adbri, AusNet, IAG, & Premier Investments shares are falling
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.
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