“Following careful consideration, and consultation with its advisers, the board of AusNet considers that it is in the best interests of AusNet’s shareholders to engage further with Brookfield on the indicative proposal,” AusNet’s board said on Monday.

At this stage, either business can walk away from negotiations with seven days’ notice. The deal will also be conditional on Singapore Power and State Grid Corporation of China approving the offer.

“Either party may terminate the exclusivity arrangements by giving the other 7 days’ written notice. No such notice may be given earlier than 7 weeks from today,” the board said.

Morningstar analyst Adrian Atkins said it was likely both offshore shareholders and ASX investors would back the deal, which is at a significant premium to the current share price.

“I think it looks like a pretty attractive price, and it’s a good offer,” he said.

Mr Atkins said there was strong international interest in Australian infrastructure assets as global funds searched for opportunities in a low rate environment.

“There is just a lot of cash out there looking for a home,” he said.

AusNet is being advised by Adara Partners and Citi as financial advisers, and by Allens as legal adviser.

The Business Briefing newsletter delivers major stories, exclusive coverage and expert opinion. Sign up to get it every weekday morning.