Australian power station company Pacific Energy has agreed to be acquired by the Queensland Investment Corporaiton (QIC) for A$422m (€264m) for its global infrastructure fund.
Pacific Energy said today that it had agreed to enter into a scheme implementation deed with QIC Private Capital.
Shareholders will receive 75.5 cents per share in cash, a 35.4% premium to Pacific Energy’s closing share price of 72 cents on Tuesday.
The company said the scheme valued Pacific Energy equity at A$422m with an implied enterprise value of A$487m.
QIC’s head of global infrastructure Ross Israel said: “As a long-term investor and experienced partner to infrastructure businesses, we are attracted to the quality of the Pacific Energy business and its position in the decentralised electricity generation sub-sector.
“Pacific Energy diversifies the wider QIC Global Infrastructure Fund portfolio and has a risk-return profile consistent with our clients’ requirements.”
He added that QIC looked forward to securing shareholder approval and, in time, to working with the Pacific Energy management team to support and grow its business ensuring critical energy resources are managed and provided to its customers.
Pacific Energy chairman Cliff Lawrenson said his board considered the QIC proposal to be an opportunity for shareholders to realise “compelling and certain value” for Pacific Energy shares.
Lawrensen said the proposal delivered a significant premium for shareholders and recognised the position Pacific Energy had built as the leading power supplier to the mining industry and remote townships in Western Australia.
The company is also working on emerging opportunities on the Eastern seaboard through Pacific Energy Victorian Hydro and NovaPower.
Pacific Energy owns a total 40 small power stations that provide ‘off-grid’ power to the resources sector and renewable hydro and gas power to Victoria’s energy grid.
Pacific Energy’s executive director Kenneth Hall, who founded Kalgoorlie Power Systems in 1981 and sold it to Pacific Energy for A$77m in 2008, now owns 48.7% of the company.
Hall has confirmed his intention to vote in favour of the scheme.
Shareholders will have the opportunity to vote on the takeover in October. If approved, it would be implemented in November.