Battle for Infigen heats up
Suitor UAC Energy has been forced to tweak its Infigen offer to match that of rival bidder Iberdrola.
The $840m takeover battle for Australia’s largest listed renewable energy generator took another twist after suitor UAC Energy was forced to tweak its bidder’s statement to reflect that Spanish rival Iberdrola had submitted a higher offer.
Infigen, which has recommended Iberdrola’s 86c-a-share offer, warned the market late Tuesday that the UAC bidder’s statement was outdated and therefore incorrect after it said there was no offer for Infigen shareholders to consider.
UAC, which kickstarted the buyout battle with a lower 80c-a-share offer, conceded on Thursday its original statement had failed to include a reference to the rival Iberdrola bid. UAC lodged its bidder’s statement on June 9 with the Australian Securities & Investments Commission and it was sent to investors on Tuesday.
In the interim, Iberdrola’s higher bid had been accepted by Infigen’s board.
UAC, which owns a 13 per cent stake in Infigen, amended five statements with its assertion that Infigen’s share price had not closed higher than its 80c bid was no longer correct.
“Following the announcement of the Iberdrola bid, the Infigen stapled security price began trading at prices substantially above the offer,” UAC said in a notice lodged with the ASX.
Similarly, its claim there was no other offer should now be disregarded by Infigen shareholders.
“Following the announcement of the Iberdrola bid, there will now be another offer namely the offer made under the Iberdrola bid,” UAC said. Infigen shares closed flat at 88c.
Iberdrola’s bid was recommended by Infigen’s board on June 17 after the two companies held talks over the last year, spoiling an existing $777m offer from UAC Energy lobbed on June 3.
The Spanish-listed utility, the largest wind power producer in the world, told The Australian on Monday it would look to replicate its global integrated strategy in Australia, suggesting it may target a bigger chunk of the electricity market should its Infigen deal prove successful.
The addition of Iberdrola to Australia’s electricity market signals a new wave of European utilities looking to muscle in on the turf of Australia’s big three integrated generator retailers AGL Energy, Origin Energy and EnergyAustralia.
French energy giant Total revealed plans in May to supply electricity for large industrial customers in a major Australian expansion, while Australia has been identified as one of six target markets where Shell will look to create a fully integrated electricity supply business.
Iberdrola signed up in January to a 320-megawatt, $500m wind and solar development in South Australia’s Port Augusta, marking its first major project into Australia, as part of a global plan to invest €10bn annually to boost its 55-gigawatt generation base.
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