Takeover

Just in (source: Street Talk). Apologies for formatting quick and paste on phone

Credit Suisse in Infigen Energy raid, $1.2b takeover bid pending
Sarah Thompson, Anthony Macdonald and Tim BoydJun 2, 2020 – 5.39pm

The acquirer is seeking to acquire an aggregate interest in up to 17.1 per cent of the stapled securities in IFN at A$0.80 per stapled security," a term sheet sent to fund managers said late on Tuesday. “Due to restrictions under the Foreign Acquisitions and Takeovers Act 1975(Cth) (FATA), the Acquirer is currently unable to acquire ownership of more than 9.9% of the Stapled Securities in IFN.

"The rest of the stake, should it be acquired, will be held by Credit Suisse, Singapore branch, the term sheet said, and the exposure would sit with UAC Energy via a total return swap. Should UAC Energy obtain regulatory approval, it could convert the swap to physical shares.The bid was at a 35.6 per cent premium to the last close and a 57.9 per cent premium to the three month VWAP, the term sheet said.UAC Energy, which is a renewable energy investment company ultimately controlled by Ayala Corporation in the Philippines, is expected to follow the raid with a takeover proposal also pitched at 80¢ a share.

The offer would value Infigen at more than $1.2 billion, including debt.UAC Energy is 75 per cent owned by AC Energy Group, a wholly owned subsidiary of Ayala Corporation, and 25 per cent owned by UPC Renewables Australia.AC Energy and UPC operate a joint venture in Australia and is developing a handful of renewable energy projects including sites in Tasmania, New South Wales, South Australia and Victoria.For Infigen, it comes after years of talks with potential suitors. It had bankers at Lazard test buyer appetite in 2016, while more recently Infigen attracted Brookfield on to its share register.The kingmaker is UK manager The Children Investment Fund Management which has a 32.6 per cent stake. It is widely tipped to be a seller at the right price.It remains to be seen whether 80¢ is the right price, although UAC Energy's decision to launch an after market raid and put real money to work suggests it is confident it can secure Infigen.Infigen owns and operates windfarms in NSW, South Australia and Western Australia, and also bought the Smithfield Energy Facility in Sydney last year.