SYDNEY (AFX) - Perth-based Alinta Ltd said it will offer 1.773 Alinta shares for every share in The Australian Gas Light Co, consistent with the ratio of its all-share merger proposal made last month.
The all scrip offer values AGL at 19.31 aud a share based on Friday's closing price or 8.9 bln aud in total.
AGL, Australia's largest energy retailer and three times the size of Alinta, responded to the merger proposal by launching its own 2.7 bln aud scrip offer for Alinta which has been rejected.
Alinta made the first move last month spending nearly 1.8 bln aud to build a 19.9 pct stake in AGL, the maximum level permissible under Australian corporations law before a formal takeover offer must be made.
Analysts say a combined group would supply about 38 pct of Australia's energy market.
AGL has about 3 mln aud customers in Australia's eastern states while Alinta has about 500,000 customers in Western Australia.
(1 usd = 1.37 aud)