AC Energy, partner raise bid for Australia’s Infigen

MANILA, Philippines — AC Energy Inc. and its partner have upped their bid to take over a listed Australian clean energy developer, challenging another offer made by a competitor.

AC Energy’s affiliate UAC Energy Holdings Pty Ltd. submitted yesterday a supplementary bidder’s statement with the Australian Securities and Investments Commission, announcing that it is increasing its offer price from A$0.80 per stapled security to A$0.86 to take over Infigen Energy Limited.

UAC Energy also said the offer is now wholly unconditional, and that it would accelerate payment terms to 10 business days.

It has also stated that it would procure the provision of an unsecured loan to Infigen on arm’s length terms to refinance its corporate facility if required.

The changes in UAC Energy’s offer were made to address each of the four reasons raised by Infigen’s directors, namely another firm offered a higher take over price, highly prescriptive conditions, the offer is subject to defeating conditions, and uncertainty whether it has sufficient funding.

Infigen previously received an offer from Iberdrola Renewables Australia Pty Ltd., a unit of Spanish wind power producer Iberdrola S.A., at A$0.86 per security.

“Given this, the improved UAC offer is at a compelling price equal to the level at which the Infigen board endorsed a competitor’s bid, unconditional, does not have a minimum acceptance condition, and allows security holders to accept the offer for all or part of their stapled securities,” UAC Energy said.

However, Iberdrola also raised its takeover bid to A$0.89 per security.

Given the offers made by UAC Energy and Iberdrola, the Infigen board advised its shareholders to take no action on both offers.

“Both the UAC offer and the Iberdrola offer will remain open for some time,” it said, noting the UAC Energy offer is open until July 24 while the Iberdrola offer will remain open until July 30.

Infigen is a renewable energy developer, generator and retailer listed in the ASX that owns and operates 670 megawatts (MW) of wind farms all over Australia, as well as gas, battery and contracted assets.

UAC is owned by AC Energy and UPCAC Renewables Australia.

UPCAC, in turn, is an Australian joint venture of AC Energy with the UPC Renewables Group which has been active in renewable energy development in Australia since 2017, focusing on large-scale solar, wind and pumped hydro storage.

The acquisition of interest 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.