(Reuters) – Australia’s Infigen Energy said on Thursday a preliminary analysis of a A$777 million ($536 million) takeover by Philippine conglomerate Ayala Corp showed the offer was “opportunistic” but that it was still considering the bid.
Infigen’s shares were slightly above the cash offer of A$0.80 a share in afternoon trade, at A$0.813, indicating market expectations for the deal to progress.
The offer was made by UAC Energy Holdings, a joint venture of Ayala’s AC Energy Philippines Inc and Hong Kong-based UPC Renewables Group. It already owns 12.8% of Infigen.
The Sydney-based renewables firm called the proposal “opportunistic”, pointing to the hit Australian energy prices have taken since the coronavirus hammered markets.
It also raised concerns about whether the offer was fully-funded and noted that it was highly conditional.
Infigen said the proposal included a material adverse change clause that could be triggered if profit took a hit of about A$4 million in a year due to any type of event, including those outside the company’s control.
When UAC made its offer on Wednesday, the price was at a 36% premium to the last closing price of Infigen’s stock.
Goldman Sachs and Lazard are advising Infigen. Credit Suisse is advising UAC.
($1=1.4501 Australian dollars)
(Reporting by Nikhil Kurian Nainan in Bengaluru; Editing by Clarence Fernandez and Christopher Cushing)