AC Energy Inc. has started its bid to take over an Australia-based renewable energy (RE) developer as part of its efforts to expand its RE portfolio, its parent firm Ayala Corp. said on Wednesday.
In a filing, the Ayala-led conglomerate said AC Energy affiliate UAC Energy Holdings Pty.
Ltd. made a tender offer for Infigen Energy Ltd. The offer is subject to certain conditions, including the approval of Australia’s Foreign Investment Review Board.
In a disclosure to the Australian Securities Exchange, Infigen said the off-market takeover bid was priced at A$0.80 per share, valuing the Australian firm at A$777 million (P27 billion).
Infigen said the offer price was “attractive and represents compelling value in the context of the price performance of Infigen-stapled securities, with the strong support from Infigen security holders for UAC’s recent on-market purchasing of Infigen-stapled securities at the offer price, highlighting the attractiveness of the offer.”
The conglomerate said “[the] outcome of the tender offer will be subject to the acceptance of any selling Infigen security holders and is expected to be a months-long process.”
The offer comes after UAC Energy already acquired a 12.82-percent stake in Infigen for A$90.4 million (P3.14 billion).
“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,” UAC Energy Chairman Anton Rohner said.
The offer is attractive “in the context of recent falls in electricity prices as well as Infigen’s relatively high debt servicing costs, its limited track-record in paying distributions,” UAC Energy said.
Infigen owns and operates 670 megawatts of wind farms across the island-continent, as well as gas, battery and contracted assets.
Ayala said the latest investment was a “crucial move forward” for AC Energy’s regional expansion as it remains committed to its goal of exceeding 5 gigawatts (GW) of attributable capacity, with 50 percent of energy generated from renewables, by 2025.
The energy platform of Ayala Corp., AC Energy has $2 billion of invested and committed equity in renewable and thermal energy in the Philippines and around the Asia-Pacific. Its attributable energy output climbed by 25 percent to 3,500 gigawatt hours in 2019, of which 50 percent came from renewables.
AC Energy shares rose by 4 centavos or 1.70 percent to close at P2.27 each on Wednesday.