Ayala obtains approval for takeover
By Jordeene B. Lagare – June 22, 2020
from The Manila Times
AN affiliate of AC Energy Inc. has secured a green light for the planned takeover of a renewable energy (RE) player listed on Australia’s stock exchange.
Infigen Energy Ltd. informed the Australian Securities Exchange that UAC Energy Holdings Pty Ltd. obtained the approval of Australia’s Foreign Investment Review Board (FIRB) for the takeover offer.
“UAC has today been notified by the Foreign Investment Review Board (FIRB) that the Commonwealth has no objection to its proposed acquisition of Infigen,” said Infigen, citing a letter from law firm Herbert Smith Freehills dated June 19, 2020.
Moreover, UAC Energy stated in the correspondence that the condition to its takeover offers for all the stapled securities in Infigen “has been fulfilled,” pursuant to Section 630(4) of the “Corporations Act 2001.”
To recall, early in June, AC Energy Inc. — through UAC Energy, the Ayala power company’s joint venture with UPC\AC Renewables Australia — launched a takeover bid for Infigen Energy in a move to scale up its renewable portfolio.
In 2019, AC Energy’s attributable energy output climbed by 25 percent to 3,500 gigawatt hours with 50 percent coming from renewables.
UAC Energy already has a 13.40-percent stake in Infigen and that the latest move is a “crucial move forward” for AC Energy’s regional expansion as it remains committed to its goal of exceeding 5 gigawatts of attributable capacity, with 50 percent of energy generated from renewables, by 2025.
Yet, Infigen’s board had recommended its investors to “take no action” in relation to the UAC Energy’s proposal, priced at A$0.80 per share, valuing the Aussie entity at A$777 million or approximately P27 billion.
Following the recommendation, Iberdrola Renewables Australia Pty Ltd., a unit of Spanish multinational electric utility company Iberdrola S.A., outmatched UAC Energy’s bid after lodging a “friendly takeover bid” worth A$841 million.
An implementation agreement was signed between Iberdrola Australia and Infigen, under which the former proposed a cash takeover offer of A$0.86 per stapled security for all of Infigen’s issued stapled securities.
It is backed by a pre-bid agreement entered into with Infigen’s largest shareholder, The Children’s Investment Fund Management, which agreed to sell 20 percent of its shares to Iberdrola in the event no higher offer was made.
Infigen’s board had “unanimously” recommended that its security holders accept the Spanish power firm’s offer, subject to the FIRB’s approval and other conditions.
Infigen owns and operates 670 megawatts of wind farms, as well as gas, battery and contracted assets.
