AC Energy, partner secure 20% stake in Australia’s Infigen

MANILA, Philippines — AC Energy Inc. and its partner have secured a material 20 percent stake in Infigen Energy, concluding their takeover offer for the listed Australian clean energy developer.

UAC Energy Holdings (UAC), an investment holding company owned by the AC Energy Group and the UPC Renewables, has increased its interest in Infigen Energy from just 13.8 percent.

AC Energy chief development officer and UAC director Jose-Maria Zabaleta said the material investment in Infigen “provides an attractive means of enhancing our exposure to the Australian renewables sector.”

“Our initial investment decision was based on the attractiveness of the Australian market and the strength of Infigen’s portfolio and management,” he said.

UAC said this closes its investment phase in Infigen after nearly three months of security purchases as it is now limited by Australian takeover rules to an ownership stake of 20 percent.

This left berdrola Renewables Australia Pty Ltd.—a unit of Spanish wind power producer Iberdrola S.A.—the sole remaining bidder for the balance of Infigen securities at an offer price of A$0.92 per security.

“With Iberdrola expected to become Infigen’s largest securityholder, we believe the outlook for our investment has further strengthened,” Zabaleta said.

UAC’s total investment in Infigen is valued at approximately A$178 million (US$128 million) based on the current Iberdrola offer price.

Meanwhile, UAC’s aggregate relevant interest in Infigen was acquired at a weighted average price of approximately $0.793 per stapled security, which represents a nearly 14 percent discount to Iberdrola’s current offer price of A$0.92 per stapled security.

“Our takeover offer for Infigen was aimed at securing a material stake in Infigen. The offer was not predicated on control, and was therefore not subject to a minimum acceptance condition. We are pleased to have met our objective, and look forward to supporting Infigen’s future growth,” UAC chairman Anton Rohner said.

UAC’s majority shareholder is  AC Energy Group, a wholly owned subsidiary of Ayala Corp., which is listed on the Philippines Stock Exchange with a market capitalization of approximately A$13.8 billion.

“We have continued to make significant investments in the renewable energy sector in the Asia Pacific, with 700 MW of new projects started over the past six months,” AC Energy president and chief executive officer Eric Francia said.

AC Energy has started the construction of various projects in the Philippines, Vietnam, India and Australia at a total cost of A$1.23 billion.

“We are committed to the Australian renewables sector, which will continue to form part of our core strategy,” Francia said.