Infigen Energy (ASX:IFN) - CEO & Managing Director, Ross Rolfe
CEO & Managing Director, Ross Rolfe
Source: The CEO Magazine
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  • Infigen Energy (IFN) has been approached by UAC Energy Holdings regarding a $777 million takeover bid
  • UAC has purchased a 12.82 per cent interest in Infigen and intends to make an off-market takeover bid of 80 cents per Infigen stapled security
  • The offer price represents compelling value in the context of the price performance of Infigen stapled securities
  • It also represents an attractive 43.4 per cent premium to the one-month volume weighted average price of 56 cents per stapled security
  • UAC is an Australian investment company owned by AC Energy Group and the UPC Renewables Group
  • This takeover bid aligns with its goal of expanding opportunities in the renewable energy sector
  • The deal is subject to approval from the Australian Foreign Investment Review Board (FIRB) and there are conditions regarding Infigen’s debt agreements
  • Infigen Energy is up 34.8 per cent and selling shares for 79.5 cents each

Infigen Energy (IFN) has received a takeover bid from UAC Energy Holdings.

UAC has purchased an interest of 12.82 per cent in Infigen and intends to make an off-market takeover bid of 80 cents per Infigen stapled security, implying a total equity value of $777 million.

This offer is a 43.4 per cent premium to the one-month volume weighted average price of 56 cents per share.

UAC is an Australian investment holding company who is owned by AC Energy Group (75 per cent) and the UPC Renewables Group (25 per cent). Both of these companies are based in Asia and are long term investment partners.

UPC\AC Renewables Australia is in turn operated as a joint venture between AC Energy and the UPC Renewables Group.

“The offer is particularly attractive in the context of recent falls in electricity prices as well as Infigen’s relatively high debt servicing cost,” UAC said.

Before the deal is completed, a number of conditions will need to be met, such as approval from the Australian Foreign Investment Review Board (FIRB) and conditions regarding Infigen’s debt agreements.

“The businesses of Infigen and UPC\AC Renewables Australia are complementary from an investment perspective,” UAC Chairman Anton Rohner said.

Infigen provides Australian businesses with firm supplies of reliable and competitively priced clean energy from a fleet of wind farms.

“We have ready access to capital and significant renewable energy expertise that will position us well to support Infigen’s pipeline of projects and focus on much needed renewable energy investment and associated employment in Australia,” he added.

UPC/AC has a number of Australian renewable energy projects in the works including

Robbins Island Renewable Energy Park and Jim’s Plain Renewable Energy Park in North West Tasmania, New England Solar Farm in regional New South Wales, which has already received development approval, Baroota Pumped Hydro Project and Bridle Track Solar Project in South Australa, and the Axedale Solar Farm in Victoria.

UAC will send a copy of the Bidder’s statement to ASIC, ASX and Infigen shortly.

Infigen Energy is up 34.8 per cent on the market this morning, selling shares for 79.5 cents each at 11:51 am AEST.

IFN by the numbers
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