This morning's AFR, but no-one has put this upUAC Energy...

This morning's AFR, but no-one has put this up

UAC Energy switches to Plan B

UACEnergy has activated its fallback option at takeover target InfigenEnergy.

Sources told Street Talk that UAC planned to hang around on Infigen’s register as a strategic shareholder, after its 86¢ a share offer to take out Infigen lapsed on Friday night.

UAC – which is controlled by Ayala Corporation in the Philippines – was sitting on a 13.4 per cent stake in Infigen at the start of the week but snapped up another 42 million shares on Tuesday, taking its stake to somewhere south of 18 per cent.

The two chunky lines of Infigen stock crossed the market on Tuesday morning at 93¢,one 20million share block and another 22million share block,for a total consideration of $39 million.

Sources said UAC would hold on to the stake, as Spanish energy giant Iberdrola seeks to hoover up the rest of the register through its 92¢ a share unconditional takeover offer for Infigen.

In UAC’s third bidder’s statement earlier this month, it hinted that once its bid lapsed it might build its stake in Infigen on market, up to a 20 per cent holding.

Sources said it was a way for UAC to get the perceived upside from the business without having to engage in a bidding war with Iberdrola.

From Iberdrola’s perspective, it’s business as usual.The Spanish giant has experience managing energy businesses with other strategics on the register, like at Neoenergia in Brazil.

Meanwhile, its primary focus is on getting shareholders to accept its offer before an August 7 deadline.

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Ash here.

While UAC is hardly the friend of small holders, its presence means Iberdola cannot achieve 90% and force a compulsory takeover.

If Iberdola wants 100% it will have to pay for it. Sure, it could 'creep' 3% every six months, but that would take years.

Roll on August 7.

Ash