Just when Beyond Zero Emissions (BZE) was launching its report aimed at boosting jobs through renewable energy investment, a takeover battle was playing out over wind producer Infigen Energy.
The $840m-plus takeover battle between a Spanish and Philippines company for an Australian wind farm operator with a large UK hedge fund investor underlines the reality that the market sees value in renewables.
The BZE discussion was how in the wake of COVID-19 a substantial push into renewables could create jobs and finally realise the nation’s potential for wind and solar energy.
Both need back up from battery power but that too is ready with the right investment and support from all sides in Canberra.
Every state in the country as a zero net emissions by 2050 target but in Canberra there is a vacuum.
Spanish-based wind giant Iberdrola took just 23 minutes to respond to a higher bid for Infigen from UAC, which suggests it was expecting the move from its rival.
Presumably UAC had approached 34 per cent Infigen shareholder The Children’s Investment Fund about its move to match the Spanish bid at 86 cents a share, free of conditions.
That tipped off the Spaniards, which is why the response came so quickly even though it was 1am on a Monday in Spain.
The Infigen board now has a conditional higher offer of 89c from the Spaniards and must decide whether that is enough to maintain its recommendation.
The Foreign Investment Review Board is expected to approve the bid any day now, but it’s not a lay down misere that the higher bid gets the recommendation.
But what should be clear to the naysayers is that smart money is chasing Australian wind assets.
Maybe government policy will catch up one day.
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