Spanish renewable energy firm Iberdrola has acquired 97.6% of all shares in the Australian takeover target, Infigen, after rival bidder, Philippines-based UAC Energy, bowed out of the race.

Iberdrola, which had been locked in a stalemate with UAC for control of Infigen since June, will now complete its A$893m takeover of Infigen.

UAC made the first move to take over Infigen in a A$532m offer and then Iberdrola emerged with a rival bid. The two parties had engaged in a series of counteroffers.

The Infigen board said it was unanimously recommending that security holders accept the off-market takeover offer by Iberdrola at 92 Australian cents per security. Iberdrola’s original offer was pitched at 86 Australian cents per share.

Late yesterday (Wednesday), UAC sold its parcel of Infigen shares to Iberdrola, reportedly for a capital gain of A$25m. The sale increased Iberdrola’s stake in Infigen from 77.39% to 97.6%.

Iberdrola has a pre-bid agreement with Infigen’s long-term investors, The Children’s Investment Master Fund and CIFF Capital UK LP, which held a 33.1% interest in the group, for their holdings.

Iberdrola said the acquisition of Infigen would bring a critical mass to its existing Australian platform, which comprises the 320MW Port Augusta Renewables Energy Park currently under construction in South Australia.

Infigen has 670MW of wind generation assets and pipeline of projects potentially adding more than 1GW to its capacity.

Infigen will be delisted from the Australian Securities Exchange in coming weeks.

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