Infigen picks $569 million offer from Spain’s Iberdrola over Ayala bid

Infigen Energy Ltd (IFN.AX) recommended on Wednesday an A$827.5 million ($569.1 million) buyout bid from Spain’s Iberdrola (IBE.MC) to its shareholders, and urged them to reject an earlier offer from Philippine conglomerate Ayala Corp (AC.PS). Iberdrola’s offer is part of its strategy to expand in renewable energy worldwide. The bids for Infigen come at a time when wind and solar firms are battling falling power prices and as the coronavirus pandemic makes company valuations cheaper. Iberdrola will pay A$0.86 a share for Infigen, a 7.5% premium to an offer made by UAC Energy Holdings, a joint venture of Ayala’s AC Energy (ACEPH.PS) and Hong Kong-based UPC Renewables Group earlier this month. The Spanish firm’s bid price is almost 5% higher than the stock’s Tuesday close. Infigen had labelled Ayala’s approach “opportunistic” just a day after it introduced its offer, and raised concerns over it being highly conditional and its means of funding. “Iberdrola’s offer is less conditional overall than UAC’s offer, including not being subject to the due diligence and disclosure conditions contained in the UAC offer,” Infigen said in a statement on Wednesday. A spokeswoman for UAC was not immediately available for comment.

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