Looks like ICG are out. As the days go by I am becoming less confident of a third bid. In fact, I’ve even sold 25% of my shareholding in recent days to deploy it in other opportunities. We have been sold short by the Board.
From this morning’s Data Room:
Intermediate Capital Group is understood to have abandoned its takeover plans for Infigen Energy because it could not find a capital partner to secure more fire power.
The global alternative asset manager is believed to be actively scanning opportunities in the Australian market and it is understood that it had been working with advisory firm Highbury Partnership in its quest to buy Infigen.
ICG amassed an interest of about 4 per cent in the listed renewable energy provider, however while it had held discussions with major shareholder The Children’s Investment Fund about a possible acquisition, it did not approached the company.
At that time, the company was believed to be in talks with Spain’s Iberdrola, which was also keen to launch an acquisition of the group.
However, ICG is no longer thought to have aspirations of an acquisition, with Iberdrola closing in.Infigen has been a hotly sought target in recent years by parties hoping to capitalise on the growing trend towards renewable energy.
However, until now, groups had not been prepared to come up with a price to satisfy TCIF, which holds about 33 per cent of the business. Iberdrola, which is the world’s largest wind energy producer, is offering $864m to buy the business in a deal that has been backed by Infigen’s board.
The Spanish bidder sweetened its deal to 89c per share from offering 86c earlier after rival suitor UAC Energy lifted its earlier 80c bid to match Iberdrola’s 86c.
Private equity firm Brookfield purchased shares in Infigen around 2018. It is understood to have held talks about a capital partnership, but the parties parted company in 2019.It is understood that Brookfield has made an approach to TCIF to buy out its stake.Iberdrola wants to consolidate its presence in the Australian market and is understood to have had a long and friendly relationship with Infigen.
Interest in Infigen comes as the Australian renewables portfolio of John Laing Group remains on offer.First round bids were recently received for John Laing’s assets, and so far, Palisade Investment Partners together with First State Super, and ICG have emerged as two of the strong contenders in the contest.Earlier expectations were that the business could be sold for about $750m.
IFN Price at posting:
92.0¢ Sentiment: Hold Disclosure: Held
