Spanish utility offers takeover bid for Infigen

Infigen’s board recommended to take the offer instead of UAC’s.

Spanish electric utility Iberdrola is making an off-market takeover bid for Infigen at a price of $0.59 (A$0.86) per stapled security in cash, a press release revealed.

The offer from Iberdrola followed an extended period of engagement with Infigen regarding potential cooperation or a control transaction.

Iberdrola’s takeover offer price represents a 69.8% premium to the three-month volume weighted average price (VWAP) of Infigen’s stapled securities before the announcement of a takeover offer by UAC Energy Holdings on 3 June, which is at a 7.5% premium to the UAC offer.

Iberdrola has also informed Infigen that their largest security holder TCI Funds have entered into a pre-bid agreement under which TCI Funds has agreed to sell 20% of Infigen stapled securities to Iberdrola no earlier than two months after starting the offer.

Its board unanimously recommends that security holders accept the offer from Iberdrola and each director intends to accept the offer, or procure acceptance of the offer, in respect of all securities they control. On the other hand, they recommended investors to reject UAC’s earlier offer, which is expected to be opened shortly.