The Perth-based utility today said the MBO group is being advised by Macquarie Bank, which is considering participating in the approach.

“The proposal, which is incomplete and non-binding, refers to a combination of cash and shares in a reshaped Alinta, which the company understands is designed to deliver a significant premium to all Alinta shareholders,” the company said.

The company said Poynton has stood aside as chairman and the board has elected John Akehurst to the position.

Akehurst said the board would evaluate any proposal by the MBO group or others but has given no commitment to advance the proposal at this stage.

“There is no assurance that any offer will ultimately be received or put forward to shareholders or recommended by the board,” he said.

Poynton and Browning will continue as directors but will play no role in evaluating the MBO or any other proposal.

In addition to Poynton and Browning, the MBO group comprises general manager business development Chris Indermaur, chief financial officer Stephen Pearce and general counsel Murray King.

The company said Alinta’s independent directors including Akehurst, Tina McMeckan, Fiona Harris and Michael Wilkins, will manage the process used to evaluate the proposal and any other proposals that come forward that may be in the interests of Alinta shareholders.

Alinta said the independent directors had established protocols to govern the MBO group’s participation in the process.

It said the board and management are meeting to discuss ongoing responsibilities in the company to deal with potential conflicts of interest and to ensure “the effective execution of the company’s business plan”.

The board has informed the MBO group that Alinta is prepared to consider their proposal only on a time frame that allows the board to fully assess the value of all alternatives, including the company’s own restructuring plans, which had previously been foreshadowed to the market.

“This time frame may be longer than would normally be expected for a proposal of this type,” Alinta said.

The board also plans to ensure that all information available to the MBO group and its advisers, and which was used in the preparation of the proposal, is made available to others who may wish to make a bona fide proposal, it said.