UAC Energy makes $542m takeover bid for Aussie wind farm Infigen

Infigen is considering its response to the proposal.

Philippines’ Ayala-owned UAC Energy Holdings has expressed intent to make an all-cash takeover bid of Australian wind farm operator Infigen for $541.73m (A$777m), according to a press release. This translates to $0.56 (A$0.80) per Infigen stapled security.

The offer is said by UAC to be attractive in the context of falling electricity prices as well as Infigen’s “relatively high debt servicing costs, its limited track record in paying distributions and its decisions to suspend investment in a number of projects and defer the delivery of its development pipeline.”

At the same time, the company has acquired an aggregate interest in 12.82% of Infigen’s stapled securities, consisting of beneficial ownership of 9.9% of the Infigen stapled securities and an economic interest in a further 2.92% via a Total Return Swap (TRS).

Infigen’s board said that it is considering its response to the proposal. They found the timing of the proposal to be “opportunistic,” considering recent falls in Infigen’s stapled security price and Australian energy prices since the global onset of COVID-19.

Further, they expressed concern that UAC may not have enough funding in place to refinance Infigen’s debt if required, as the proposal included conditions relating to Infigen disclosing any change of control consequences in its debt facilities.

Goldman Sachs and Lazard are acting as Infigen’s financial advisers, whilst Gilbert + Tobin is acting as legal adviser.