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  • Pacific Energy has started a matching rights process after receiving a competitive takeover bid from OPTrust and Infrastructure Capital Group.
  • Under the new offer, Pacific Energy shareholders are set to receive $1.085 in cash for every existing share, compared to the $0.975 share value put forward under the QIC bid.
  • QIC has been made aware of the competing proposal and now has a chance to match the outstanding offer within four days.

Pacific Energy has started a matching rights process after receiving a competitive takeover bid from OPTrust and Infrastructure Capital Group.

In July of this year, Pacific Energy announced it had entered a scheme implementation deed with QIC Private Capital. QIC’s evaluation valued the company’s equity at $422 million with an implied enterprise value of $487 million.

On Monday, however, Pacific Energy received a joint offer from Canadian investment firm OPTrust and local fund manager Infrastructure Capital Group (ICG).

Under the new offer, Pacific Energy shareholders are set to receive $1.085 in cash for every existing share, compared to the $0.975 share value put forward under the QIC bid.

The competing offer has also valued Pacific Energy’s equity at $470 million, with an implied enterprise value of $535 million (including debt). This adds up to an 11.3 per cent premium, compared to the scheme drafted by QIC.

OPTrust Managing Director Stan Kolenc said opportunities for Pacific Energy were well aligned with the Consortium.

“We have always thought Pacific Energy was a great business and only had this reinforced during numerous site tours, discussions with management, and extensive due diligence we conducted on Pacific Energy prior to the announcement of the QIC proposal,” he said.

Optrust and ICG’s competing proposal has since been approved by Australia’s Foreign Investment Review Board, and after reviewing both bids, Pacific Energy’s board has decided to trigger a matching rights process.

QIC has been made aware of the competing proposal and now has a chance to match the outstanding offer within four days. If they choose to do so, Pacific Energy has promised to give the matching proposal due consideration.

The company’s board will continue to formally recommend the QIC Scheme until the matching process has been completed.

Pacific Energy is an energy infrastructure company based in Perth. Currently, their share price is up 12.89 per cent at $1.10.

PEA by the numbers
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