Infigen gets $835m rival takeover bid

Wind farm operator Infigen Energy has received a rival takeover bid from Spanish utility Iberdrola valuing it at $835 million.

It says Iberdrola has agreed to pay Infigen shareholders a price of 86 cents a share, a 7.5 per cent improvement on a takeover bid by UAC, a unit of Philippines conglomerate Ayala Corp. 

Shares in Infigen surged more than 35 per cent earlier this month after it received the 80 cents-a-share offer from UAC.

It termed the timing of UAC’s bid “opportunistic” and rejected the offer.

Infigen says Iberdrola’s offer follows an extended period of engagement regarding potential co-operation or a control transaction.

The company says its largest shareholder, TCI Funds, has signed a pre-bid agreement to sell a 20 per cent stake to the Spanish energy company, subject to the takeover getting approval from the Foreign Investment Review Board and no superior offer emerging.

Its board has recommended Iberdrola’s takeover offer to shareholders, saying it is less conditional overall and is also not subject to the due diligence and disclosure conditions contained in the UAC offer.

Iberdrola has also offered to extend an unsecured loan on arm’s-length terms to Infigen if its lenders call for a debt review.

Infigen operates assets with a capacity of about 670 megawatts in NSW, SA and WA, Victoria and Queensland. It has another 700 MW renewable capacity under construction. 

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