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Infratil supports Greenspark offer for Energy Developments shares
30 Nov 2009
Greenspark Power Holdings Ltd has today announced an intention to make a full offer for all the shares in Energy Developments Limited (ENE) at A$2.75 per share. Greenspark is jointly owned by entities advised by the PEP Group.
Infratil, ENE’s largest shareholder, is fully supportive of this offer and has concurrently entered into a Pre-Bid Agreement with Greenspark in respect of 31,308,860 of its shares in ENE. The commitment given under the Pre-Bid Agreement is in respect of 19.99% of the shares in ENE.
The Pre-Bid Agreement obliges Infratil to accept the offer for this 19.99% shareholding within five business days of it becoming unconditional subject to the terms of the agreement. A copy of the Pre-Bid Agreement, which includes the conditions related to this commitment, will be provided to both the ASX and NZX. It is also Infratil’s intention, in the absence of a superior proposal, to accept the offer for the balance of its shareholding.
Infratil Chief Executive Officer Marko Bogoievski said Infratil had been supportive of ENE for many years and understands its business and the challenging environment in which it operates.
“Infratil believes that A$2.75 per share represents fair value for ENE and its shareholders,” he said.
“During the past eighteen months ENE has undertaken an extensive review of its operations and structure. During that time a number of substantial and reputable parties, including PEP, have engaged with ENE and undertaken due diligence on all or parts of its business.
“While several parties found ENE and its assets attractive, there were a number of factors associated with the business that made it difficult to reach an agreement with ENE on value.
“However, value is ultimately determined by well-informed market participants. Third parties who conducted due diligence on ENE’s business and its prospects all concluded that the value is lower than ENE’s own assessment.
“It is now appropriate that shareholders make the decision on value, which is why Infratil is supportive of the offer at A$2.75 and has made an early commitment to it.”
Mr Bogoievski said Infratil was not withdrawing from the Australian energy sector or changing its investment focus.
“We intend to significantly increase our investment in the Australian energy sector in the near future and are actively looking for new investment opportunities,” he said.
For further information contact:
Matthew Horan, Cato Counsel