Archer an 'unsolicted' bidder
The Age
Tuesday June 9, 2009
ARCHER Capital has been outed as one of the private equity funds behind an "unsolicited, highly conditional and incomplete" takeover proposal for Energy Developments.The renewable energy group suspended trading in its shares on Friday to announce the not-quite-bid but gave no details of the proposal other than to say its largest shareholder, New Zealand's Infratil, was considering granting the bidding consortium an option over 19.9 per cent of the company.Infratil, which owns 32 per cent of Energy Developments, told the New Zealand Stock Exchange yesterday it had granted a call option to Sydney-based Archer Capital.The option agreement, signed and dated between the two parties on Sunday, does not have a strike price and was secured by Archer for the nominal payment of a $10 fee.The agreement says Infratil will sell Archer the 30.83 million shares subject to the option for a price equivalent to whatever takeover offer, if any, occurs - and so long as it is pitched at a price acceptable to Infratil. The option has a 10-week life, unless Archer makes an offer, which will extend it to three months.The option also expires if Energy Developments announces an asset sale program of $100 million or more. Energy Developments, at the urging of its shareholders, has been looking at selling its European businesses since earlier this year but has not completed a sale."This will allow Infratil, if it wishes at the time, to sell the balance of its shareholding into the bid or scheme. Infratil has also agreed, in certain circumstances, to reimburse Archer's costs and share defined upside benefits," Infratil said in its announcement.Energy Developments produces renewable energy and low greenhouse gas emission energy from power stations in Australia, the US, Europe and Britain.Energy Developments shares closed 11 higher on Friday at $1.56 after it revealed the potential takeover offer.Its highest point in the past year was $3.03 in August. Infratil shares rose NZ4 (A 3.16) to $NZ1.74. -- With NZPA
© 2009 The Age