Infigen may have been planning its own acquisition

Infigen Energy is through to have rebuffed a number of offers in recent years.

All the competition to buy Infigen Energy in the past three weeks may have distracted it from some takeover activity of its own, with the Australian listed renewable energy provider said to have been poised to raise equity and embark on an acquisition.

While it is unclear exactly what has been on its radar, some believe it is likely to be a retail energy business that complements its renewable energy generation business — possibly a business such as Click Energy.

Click Energy is owned by the Australian-listed mobile phone service provider Amaysim and is currently up for sale through Luminis Partners.

It is an Australian energy retailer selling electricity to private and business customers in Victoria, NSW, South Australia and Queensland. The company is unique in being a dedicated online energy retailer.

On Wednesday, Infigen revealed that it had a higher takeover offer to an earlier approach this month from UAC Energy, valuing the company at close to $840.6m.

Spanish renewable energy giant Iberdrola, which has operations in Australia, is now offering 86c per share for the company — more than the 80c per share that UAC offered on June 3.

Iberdrola is advised by Nomura.

Infigen has recommended the bid that values the company’s equity at $840m and the major shareholders, the Children’s Investment Master Fund and CIFF Capital UK, which collectively control about 33.1 per cent, have also backed the offer.

It is a 45.8 per cent premium to the unaffected Infigen share price on June 2.

Iberdrola wants to consolidate its presence in the Australian market and is understood to have had a long and friendly relationship with Infigen.

The group is just one of many suitors over the years that have been rebuffed by the company’s major shareholders, which are said to have always wanted more than 80c per share for the business.

Parties were understood to have earlier offered between 60c and 70c, but the company is now in its best shape as clean energy from solar and wind farms becomes an increasingly popular power source.

Infigen is a supplier of clean energy in Australia, with 670 megawatts of owned renewables and more than 1 gigawatt of pipeline, combined with 268 megawatts of highly valued firming assets and additional 246 megawatts of contracted renewables capacity.

The company has 75 per cent of sales from their operational assets under long-term contracts, perfectly fits Iberdrola group’s strategy towards stable value creation.

Both Iberdrola and UAC would need Foreign Investment Review Board approval for an acquisition.

Iberdorla has a minimum acceptance agreement for its takeover of 50 per cent.