Philippine takeover bid for Infigen Energy sends share price rocketing 34%

Australian clean energy company Infigen Energy (ASX: IFN) shares have soared this morning on news of a takeover bid by investment firm UAC Energy, a subsidiary of AC Energy which is wholly owned by Philippines energy conglomerate Ayala Corporation.

The intended takeover bid sees UAC seek to acquire all outstanding shares in Infigen for $0.80 per share which represented a 43.4% premium on the stock’s 30-day volume weight average price of $0.56.

The bid is subject to various regulatory approvals including the Foreign Investment Review Board with Credit Suisse advising on the takeover and expected temporary holder of shares if the bid is to be approved. 

“An acquisition of Infigen is consistent with our shareholders’ strategies of investing in attractive opportunities in the renewable energy sector,” said UAC Energy Chairman Anton Rohner. 

“The businesses of Infigen and UPC\AC Renewables Australia are complementary from an investment perspective. 

“We have ready access to capital and significant renewable energy expertise that will position us well to support Infigen’s pipeline of projects and focus on much needed renewable energy investment and associated employment in Australia.”

The takeover bid values Infigen Energy at $1.2 billion, which includes net debt of $454m as of 31 March 2020. 

Owning and operating seven wind farms across New South Wales, South Australia and Western Australia, Infigen has been at the forefront of Australia’s transition towards renewable energy sources since listing on the ASX in 2005. 

The Company reported underlying EBITDA of $165.3m in FY19.

UAC is a proprietary company 75% owned by AC Energy Group and 25% UPC Renewables Australia.

Interest in Infigen should come as no surprise given UPC/AC Renewables have been developing an Australian portfolio of renewable energy projects in Victoria, South Australia, Tasmania, New South Wale over the past three and a half years. 

Beyond this, the joint venture partners are long-term investors in renewable energy projects in the Philippines and Indonesia whilst developing clean energy projects in Vietnam, India, Korea and Taiwan. 

Ayala Corporation, the owner of AC Energy, is listed on the Philippines Stock Exchange with a market capitalisation of approximately A$13.8 billion. 

Upon news of the takeover bid, IFN shares jumped 34.75% higher to $0.795.

*Owners of this website are IFN shareholders