By David Winning

SYDNEY--Australian power distributor AusNet Services Ltd. said it has agreed to an improved takeover offer from a consortium led by Brookfield Asset Management Inc. that it deems to be superior to a rival proposal from APA Group.

AusNet said the consortium's new all-cash offer values its equity at 10.2 billion Australian dollars (US$7.67 billion), or A$2.65 a share, and that major shareholder Singapore Power Ltd. has signaled it intends to vote in favor of the proposal.

The Brookfield-led consortium includes Australia's Sunsuper Superannuation Fund, and Canadian pension funds and asset managers Alberta Investment Management Corp., the Investment Management Corp. of Ontario, and Healthcare of Ontario Pension Plan.

AusNet has been the subject of several raised takeover bids by Brookfield and APA in recent weeks.

APA's most recent offer, which comprised a mix of cash and shares, was worth A$2.60 a share.

"On October 31, AusNet received a binding offer from Brookfield at A$2.65 per share which was subject to a condition that a scheme implementation deed be signed by 10pm the same day or the binding offer would expire," AusNet said.

AusNet said it agreed to a deal because it feared the offer would expire and it was conscious that Singapore Power, which owns 32.74% of the company's stock, preferred an all-cash offer. Also, APA had not indicated it would be able to offer an all-cash alternative at a level that would be higher than its earlier bids, AusNet said.

AusNet said it would be required to pay Brookfield a break fee of A$101.7 million if its board later decides to recommend a rival proposal.

Write to David Winning at david.winning@wsj.com

(END) Dow Jones Newswires

10-31-21 1819ET