IT appears a Spanish multinational company has gained the upper hand against its Philippine rival in the heated takeover battle for the renewable energy (RE) developer listed in Australia.
In a disclosure to the Australian Securities Exchange on Tuesday, Infigen Energy Ltd. said its board has unanimously endorsed the offer of Iberdrola Renewables Australia Pty. Ltd., a unit of Spain-based electric utility company Iberdrola S.A.
“Each director also intends to accept the Iberdrola offer, or procure acceptance of the Iberdrola offer, in respect of all Infigen stapled securities they own or control or otherwise have a relevant interest in, in each case, in the absence of a superior proposal,” it added.
On the other hand, Infigen’s board recommended rejecting UAC Energy Holdings Pty. Ltd.’s proposal and that its investors should take no action in the said offer.
Infigen Energy disclosed the board’s considerations for coming up with this recommendation. Iberdrola Australia’s bid price, it said, is at a 3.5-percent premium to the UAC Energy’s offer price.
Although the Iberdrola Australia’s proposal still requires regulatory approval and fulfillment of certain prerequisites, Infigen Energy’s directors continue to believe the defeating conditions are capable of satisfaction during the Spanish entity’s offer period.
Early on Monday, UAC Energy raised its offer price to 86 Australian cents from 80 Australian cents per stapled security to take over Infigen Energy. This allows security holders to accept “all or some” of their stapled securities.
Their proposal was now wholly unconditional and it would accelerate payment terms to 10 business days.
Iberdrola Australia also increased its bid price to 89 Australian cents from 86 Australian cents per stapled security.
In its supplemental bid on Tuesday, Iberdrola Australia has waived the conditions of its takeover bid, excluding an approval from Australia’s Foreign Investment Review Board and the minimum acceptance condition of more than 50 percent of Infigen stapled securities.
Infigen owns and operates 670 megawatts of wind farms all over Australia, as well as gas, battery and contracted assets.
UAC Energy is 75-percent owned by AC Energy, with the remaining 25 percent being held by UPC Renewables Australia.
UPC\AC Renewables Australia is in turn a joint venture between AC Energy and UPC Renewables that have renewable energy projects in the pipeline.
Ayala shares climbed by P15 or 1.97 percent to close at P777 apiece on Tuesday.