Energy Developments rejects Pacific Equity's $380-million bid
19 Oct 2009
Australia's renewable energy company Energy Developments Corp has rejected an A$415 million (US$380 million) share-based takeover offer from private equity group Pacific Equity Partners, claiming it undervalues the company.
Pacific Equity Partners is offering A$2.65 a share, it said today.
"The board considers that the (Pacific Equity Partners) proposal represents inadequate consideration for the long-term intrinsic value of the company," the clean energy group said in a statement.
It also said it ended talks with an international infrastructure specialist fund manager, which had offered to buy the group's landfill gas power generation interests in France and the UK, after terms couldn't be agreed.
Energy Developments, which generates power from landfills and coal mine methane, terminated discussions with private equity firm Archer Capital, which had made an indicative offer of $2.80 a share, citing "unresolved conditionality" of Archer's offer for rejecting the proposal.
The number of offers indicates there is a wide range of interest in the company, analysts opined.
