Spain set to defeat Philippines in bidding war for Infigen Energy

After recommending shareholders take no action to the $1.2 billion takeover bid from UAC Energy at 80c per share, Infigen Energy (ASX: IFN) has today recommended shareholders instead accept an offer of 86c per share from Spanish energy giant Iberdrola. 

The new takeover offer comes two weeks after the UAC Energy offer was made, with the backing of Philippines conglomerate Ayala Corporation, which was seeking to expand their exposure to clean energy production in Australia through Infigen’s seven owner-operated wind farms.

However, the bid had been met with mixed reactions after being announced to the ASX on 3 June before Infigen Directors recommended that shareholders take ‘no action’ on 4 June. Since then, IFN shares had consistently traded above the 80c offer price.

Key to the Director’s recommendation for shareholders to accept the new bid from Iberdrola, which represents a 69.8% premium on Infigen’s 3-month volume weighted average price (VWAP), is the less conditional terms which are not subject to the due diligence and disclosures requested by UAC. 

Furthermore, the Spanish bid has the backing of TCI Funds, one of the largest Infigen shareholders, which has agreed to sell 20% of their stake if it would give Iberdrola more than 50% stake in the Infigen. 

The takeover offer is subject to the Foreign Investment Review Board. 

Iberdrola has over 55GW of installed capacity with leading market positions in Spain, the UK, the US and South America. The Company is listed on all four Spanish stock exchanges and has an American Depository Receipt (ADR) that trades on the New York Stock Exchange. 

Iberdrola provides energy to 34 million customer billing points worldwide. 

*Owners of this website are IFN shareholders