Origin Energy (ORG), APA Group (APA) and Japan-based Marubeni Corp, have reportedly bid for former Babcock & Brown satellite, Alinta Energy Corp (AEJ).
AEJ is a power generation business, which happens to operate the largest private gas electricity retailer in WA.
AEJ has come under significant financial pressure recently, and is close to breaching a number of its loan covenants.
Its troubles have seen its market capitalisation plunge to just over $50 million, making it one the smaller stocks in the Australian share market.
Of most interest to ORG would be AEJ’s power stations and, given the group’s healthy balance sheet, it would be well placed to make an offer.
The takeover rumours meant AEJ was one of the hot stocks yesterday, with its share price surging over 40%.
Written by: admin Other posts from: admin
Posted in ASX Small Caps, ASX Speculative Shares, Financial News, General, Hot Stock Picks, Market Sectors News, S&P ASX News, Top Stocks, Utilities Stocks