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Indian Energy gets 31 pence per share offer from Infrastructure India, valuing it at £7.9million

In early June this year, Indian Energy Ltd. (IEL), an operator of wind farms backed by Lloyds Banking Group Plc (LLOY) and AXA Investment Managers had said it expects a formal offer from a potential buyer within weeks.

“We want to see a deal concluded in a relatively short period of time,” Chief Executive Officer Rupert J. Strachwitz, co-founder of the company and former financier at Dresdner Kleinwort’s private equity division, said in a telephone interview with Bloomberg then. “We’re talking weeks, not months,” he had added.

According to reports,  India-focused wind farm developer Indian Energy announced an almost £8 million takeover offer had been made for the company.

Infrastructure India Plc will offer 100 of its shares for every 259 shares held by investors in Indian Energy. This values Indian Energy at around 31 pence per share.

The company said that the offer represents a premium of 21.6 per cent based on the closing price of Indian Energy on 20 July.

Indian Energy’s directors said they consider the terms of the proposed offer to be “fair and reasonable” and that they intend to recommend unanimously that Indian Energy shareholders vote in favour of  the offer.

Both companies are AIM listed and it is intended that the offer be implemented by way of a scheme of arrangement under Part VIII of the Guernsey Companies Law.

Indian Energy’s results showed that it increased revenues by 55 per cent to £3.4 million during its 2011 financial year, while it reduced its loss after tax to £2.9 million from £3.4 million in 2010.

The firm had cash and cash equivalents of £1.5 million and net debt of £19.6 million at the end of March (31 March 2010: £3.7 million and £7.8 million respectively).

“We are delighted to deliver a year-on-year improvement in Indian Energy’s financials for the year to 31 March 2011,” said Rupert Strachwitz, Indian Energy’s chief executive. “This is a reflection of the commissioning of the Theni Project, which was completed in August 2010.  Despite missing the bulk of the monsoon season at Theni, we are delighted that we can report a 55 per cent increase in revenue.”

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