Philippine conglomerate Ayala Corp said on Monday its offer for Infigen Energy is unconditional, as it competes with Spain’s Iberdrola to buy the Australian renewables firm.
Infigen had earlier raised concerns about the offer made by UAC Energy Holdings, a joint venture of Ayala’s AC Energy Philippines Inc and Hong Kong-based UPC Renewables Group, saying it was a highly conditional one.
Iberdrola subsequently made an agreed A$828 million ($567.8 million) bid for the wind and solar firm which was 7.5% higher with fewer conditions, prompting Infigen to urge its shareholders to reject the UAC bid.
Analysts expect a bidding war for Infigen as the firms look to bag its seven wind farms and a large pipeline of projects which are currently on hold. Its stock has jumped 50% since UAC’s bid on June 3 and continues to trade above both offer prices.
Iberdrola raises bid for Infigen as takeover race heats up
Spain’s Iberdrola raised its bid for Infigen Energy by three cents a share on Monday, upping the ante in its race against Philippine conglomerate Ayala Corp to buy the Australian renewables firm.
Iberdrola raised its offer price to A$0.89 per share, marginally above Infigen’s Friday close of A$0.885, valuing the wind and solar firm at A$856.3 million ($587.6 million).
The increased offer came minutes after Ayala had declared its bid unconditional by removing riders proposed in its initial A$0.80 per share approach, which had irked Infigen.
The Australian company was already backing a higher, less conditional offer from Iberdrola before the Spanish company lodged a fresh bid on Monday.
Analysts had forecast a bidding war as the firms look to bag Infigen’s seven wind farms and a large pipeline of projects which are currently on hold.
Its stock has jumped 50% since Ayala’s bid on June 3 and continues to trade above the Philippine firm’s offer price.