There’s a takeover play for energy business Infigen
(ASX: IFN), its share price has jumped 34%.
What is Infigen?
Infigen is one of the largest renewable energy generators in Australia. It owns a portfolio of wind winds, it also sources renewable energy from a portfolio of contracted assets.
What the takeover details are
UAC Energy has acquired a 12.82% interest in Infigen. This business is owned by AC Energy Group and UPC Renewables Group, which is in turn owned by Ayala which is listed on the Philippines Stock Exchange. It is operating and developing projects in several Asian countries.
AC Energy and UPC is developing a portfolio of its own renewable assets including solar farms and hydro projects in Tasmania, NSW, South Australia and Victoria.
To be precise about the current ownership, UAC owns 9.9% of Infigen and a 2.92% interest via a ‘total return swap’, where UAC will buy those shares as long as it receives approval from Australian regulators.
UAC has declared that it intends to make an all cash takeover bid of $0.80 per Infigen share. This is a 35.6% premium to the Infigen closing price on 2 June 2020. It’s also a 43.4% premium to the 1-month average share price over the past month.
UAC said it’s a good offering considering Infigen’s patchy shareholder returns, the delay in projects and the fall in electricity prices. However, it will require FIRB approval to go ahead as well as other conditions.
If I were an Infigen shareholder I’d take the money today because there hasn’t been a better share price on offer since the first half of 2017.
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Disclosure: At the time of writing, Jaz doesn’t own shares in any of the businesses mentioned.
