Wind farm operator Infigen is recommending shareholders accept a takeover offer from Iberdrola. Image by REUTERS PHOTO

merger, acquisition and takeover

Infigen board backs $864m Iberdrola offer

2020-06-30 13:10:24

The board of wind farm operator Infigen are recommending that shareholders accept an $864 million takeover offer from Spanish utility Iberdrola.

The recommendation on Tuesday came after Iberdrola waived conditions for its off-market bid, a day after raising its offer to 89 cents per share.

“The Iberdrola Offer is a compelling opportunity for Infigen securityholders to provide liquidity and attractive value by comparison to the market price history of Infigen securities at any time prior to Iberdrola Australia’s offer,” the company said.

UAC Energy, a unit of Philippines conglomerate Ayala Corp on Monday raised its rival offer for Infigen to 86 cents per share and made it unconditional, but Infigen says it believes the defeating conditions attached to Iberdrola’s bid are capable of satisfaction.

Iberdrola’s offer is conditional on receiving Foreign Investment Board Approval and half of all shareholders accepting the offer.

“Iberdrola Australia is pleased with the progress FIRB has made in processing its application for approval and is very confident of receiving approval in a timely manner,” the company said.

Infigen has seven wind farms and a large pipeline of projects across Australia.

Iberdrola, a Spanish corporation with a market capitalisation of $105.4 billion, calls itself the world’s leading private electricity group by customer numbers, as well as the number one producer of wind power.

At 1245 AEST, Infigen shares were up 0.6 per cent to 92 cents, still above Iberdrola’s offer price.