Iberdrola gets FIRB clearance for takeover of Aussie Infigen
The Woodlawn wind farm in New South Wales. Source: Infigen Energy
The Aussie unit of Iberdrola SA (BME:IBE) has secured approval from the Foreign Investment Review Board (FIRB) to proceed with its proposed acquisition of renewables company Infigen Energy (ASX:IFN) and its installed wind assets totalling 670 MW.
The Spanish renewable energy giant announced the milestone on Tuesday. This was one of the two conditions, together with the minimum acceptance condition, for the takeover of Sydney-based Infigen, which already recommended its shareholders to vote in favour of the deal.
Iberdrola is offering AUD 0.89 (USD 0.62/EUR 0.55) per share for the Aussie wind developer in what has turned into a fierce battle with UAC Energy Holdings Pty Ltd (UAC). The latter, owned by Philippine conglomerate Ayala Corporation’s AC Energy and Hong Kong-based UPC Renewables Group, at the start of June bought a 12.82% stake in Infigen and made an offer of AUD 0.80 per share for the rest of the stock. Later in June, the group raised its bid to AUD 0.86 per share, thus machining the initial one made by Iberdrola and freed the offer from all conditions apart from the FIRB review. Iberdrola responded by making a counter proposal of AUD 0.89 per share, representing a 3.5% premium to the UAC offer.
Infigen’s board has advised investors to reject the UAC bid and take no action in respect of the offer but to support the proposal of Iberdrola.
The minimum acceptance condition that calls for Iberdrola to acquire more than 50% of Infigen’s stapled securities has to be met before Iberdrola’s bid expires on July 30.
Infigen owns about 670 MW of installed onshore wind capacity along with 268 MW of conventional generation and energy storage firming assets plus 246 MW of additional renewable power purchase agreements (PPAs) with third parties. Also, the company has a 1-GW-plus portfolio of wind and solar projects in different stages of development.
Veselina Petrova is one of Renewables Now's most experienced green energy writers. For several years she has been keeping track of game-changing events both large and small projects and across the globe.