Ann: Iberdrola Offer Declared Unconditional, page-5

Today's AFR:

Iberdrola tinkers with Infigen Energy offer to speed things up

Iberdrola’s takeover of Infigen Energy is almost fully powered up – it just needs one thing: momentum.The Spanish renewables giant’s 89¢ a share offer has ticked just about every box. It was lobbed at a healthy premium, has the backing of Infigen’s board and largest shareholder as well as FIRB approval. It has also taken pesky strategic investor Infrastructure Capital Group out of the equation, and seen off rival bidder UAC Energy (for now).But with the offer due to close in two weeks – at 7pm on July 30 – and only 23.97 per cent of Infigen’s register accepting thus far, Iberdrola would want to get a wriggle on.

The logical strategy for Iberdrola to generate some deal momentum would be to waive its 50.1 per cent minimum acceptance condition.If that condition was removed, it would allow accepting Infigen shareholders to get paid their 89¢ a share straight away, rather than waiting for Iberdrola to get to 50.1 per cent minimum acceptance level.

If that was the case, shareholders could get their cash up front, in a bid that valued Infigen’s equity at a 52.3 per cent premium to its 12-month VWAP. It’s the sort of move that would normally draw hedge funds to also accept the bid.The only other potential complicating factor would be if rival suitor UAC Energy blindsided Iberdrola with a higher offer.
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I see a complicating factor the journalist could have written about had they bothered to look at the market: players with considerable resources have consistently outbid Iberdola's offer - either expecting a better bid or valuing the business at more.

Why would anyone accept 89c from Iberdrola when a higher price is available on-market?

Without a higher bid, this takeover is dead in the water.

Ash\