By David Winning
SYDNEY--Infigen Energy said it will recommend a takeover offer from Spain's Iberdrola SA that values the renewable-energy provider at 835 million Australian dollars (US$575 million) and trumps an earlier bid by UAC Energy Holdings Pty Ltd.
Infigen said Iberdrola intends to offer A$0.86 per security in cash to acquire the company, representing a 7.5% premium to the earlier A$0.80/security bid by UAC Energy.
"The offer from Iberdrola follows an extended period of engagement with Infigen regarding potential cooperation or a control transaction," Infigen said in a regulatory filing.
Infigen said TCI Funds, which is its largest shareholder, has entered into a pre-bid agreement to sell 20% of its interest in the company to Iberdrola. The sale will happen "no earlier than two months after commencement of the offer subject to FIRB approval being obtained and no superior proposal emerging," Infigen said.
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