AC Energy buys into Infigen

MANILA, Philippines — AC Energy Inc. is eyeing to take over a listed Australian clean energy developer for about P27 billion to deepen its foothold in Australia as well as  meet its goal of hitting five gigawatts (GW) of renewable energy  capacity by 2025.

In a disclosure to the Australian Stock Exchange, Infigen said UAC Energy Holdings Pty Ltd. – owned by AC Energy and UPCAC Renewables Australia – made an all-cash tender offer to acquire all of the Infigen securities for AUD $0.80 per share or roughly P27.63 apiece.

The take-over offer implies a total equity value of AUD 777 million or around P26.8 billion.

UAC said the offer price is attractive and represents compelling value in the context of the price performance of Infigen stapled securities

It also said the offer is “particularly 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 and decisions taken by Infigen to suspend investment in a number of projects and defer the delivery of its development pipeline.”

“The Infigen investment is highly complementary to our previous investments in UPCAC Renewables Australia, where we are already developing a large portfolio of renewable energy assets. We have access to ready capital, and have the relevant renewable energy experience to support Infigen in growing its business,” AC Energy president and chief executive officer Eric Francia said.

UAC Energy said the tender offer for Infigen is subject to, among other conditions, approval from the Australian Foreign Investment Review Board.

The outcome of the tender offer will be subject to the acceptance of any selling Infigen securityholders and is expected to be a months-long process.

The tender offer follows the strong support from Infigen shareholders.

In a statement, AC Energy, through its affiliate UAC, has directly and indirectly acquired a 12.82 percent stake in Infigen for AUD90.4 million or roughly P3.1 billion.

AC Energy said the investment in Infigen is a crucial move forward for its regional expansion as it remains committed to 2025 goal with 50 percent of energy generated from renewables.

Infigen is a renewable energy developer, generator, and retailer listed on the Australian Securities Exchange that owns and operates 670 megawatts of wind farms all over Australia, as well as gas, battery and contracted assets.

AC Energy said the investment in Infigen strengthens both AC Energy’s and UPCAC’s commitment to provide low-cost power in Australia by expanding its operating portfolio and enabling the sale of energy through retail channels.

“Our investment into Infigen reflects our confidence in the prospects for renewable energy in Australia. Investing into an operating renewable energy portfolio helps us meet our corporate and sustainability objectives. We are excited to support Infigen as it continues to expand in this sector,” AC Energy chairman Fernando Zobel de Ayala said.

UPCAC Renewables has been operating in Australia for three and a half years, focusing on large-scale solar, wind and pumped hydro storage.

It is developing a portfolio of Australian RE projects, which include the 1,000-MW to 1,200-MW Robbins Island Renewable Energy Park in North West Tasmania, the 720-MW New England Solar Farm in regional New South Wales (NSW), which has already received development approval from the NSW government/independent planning commission; the 250-MW Baroota Pumped Hydro Project and 300-MW Bridle Track Solar Project in South Australia and the 160-MW Axedale Solar Farm in Victoria.

AC Energy and UPC are long-time investment partners in Asia, with a successful track record of operating renewable energy projects in the Philippines and Indonesia, and projects in development in Vietnam, India, Korea, and Taiwan.