Infigen (ASX: IFN) has received another takeover offer. This one is from Iberdrola Renewables Australia, which is ultimately owned by a Spanish company.
What is Infigen?
Infigen is one of the largest renewable energy generators in Australia. It owns a portfolio of wind winds, it also sources renewable energy from a portfolio of contracted assets.
What’s the new offer?
You may remember that a few weeks ago Infigen received a takeover offer from UAC Energy (owned by a Philippine business) which has taken up a stake of more than 12%.
UAC said it intended to make an all cash takeover bid of $0.80 per Infigen share. This was a 35.6% premium to the Infigen closing price on 2 June 2020. It was also a 43.4% premium to the 1-month average share price over the past month.
A week ago Iberdrola announced a larger offer of $0.86 cash per share. This was a 7.5% premium to the UAC Energy takeover bid. It also represented a 45.8% premium to the unaffected Infigen share price on 2 June 2020.
A takeover bid implementation agreement has already been done with the TCI Funds, which own about a third of Infigen’s shares. TCI Funds will sell around 20% of Infigen’s shares to Iberdrola Australia no earlier than two months after the commencement of the offer.
Today, the official bidder statement was released. Infigen’s directors have unanimously recommended that shareholders accept the offer and I agree with that conclusion, there doesn’t seem to be any other offers coming in. Investors may need to decide whether to sell before or after 30 June 2020.
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Disclosure: At the time of writing, Jaz doesn’t own shares in any of the businesses mentioned.
