Canada’s Brookfield Asset Management Inc (TSE:BAM.A) has no intention, for now, of making a buyout bid for Australian renewable power producer Infigen Energy (ASX:IFN) in which it recently bought a minority stake.
Last Wednesday it was unveiled that Brookfield, through BIF III Logan Aggregator LP, has purchased a 9.06% stake in Infigen for about AUD 50.6 million (USD 39.4m/EUR 31.8m) in cash.
Infigen said in a statement on Monday that its chairman Len Gill has met with representatives of Brookfield to discuss the Canadian asset manager’s interest in the company. The discussions were “exploratory and preliminary”, also constructive, according to the chairman.
“They indicated their support for Infigen Energy and its business strategy and a willingness to assist us to identify options to create value for all security holders through growth,” Gill said. He noted that Brookfield had previously made initiatory approaches to discuss their interest in becoming a strategic security holder and a potential capital partner.
Regarding market speculation about a potential merger and acquisition (M&A) transaction involving the two parties, Gill said that Brookfield has no such plans at this point, but reserves its right to alter its views in the future, particularly if a third party makes a proposal.
Infigen develops, owns and operates renewable power plants in Australia. Its wind power portfolio includes 670 MW of wind parks, including the 113.2-MW Bodangora project in New South Wales that is currently under construction. The company's development pipeline comprises equity interests in about 1,100 MW of large-scale wind and solar assets in Australia, according to information on its website.
The market capitalisation of Infigen currently stands at AUD 667.8 million.
(AUD 1.0 = USD 0.778/EUR 0.628)
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