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.
In late July this year, India-focused wind farm developer Indian Energy announced an almost £8 million takeover offer had been made for the company.
Infrastructure India Plc had offered 100 of its shares for every 259 shares held by investors in Indian Energy. That valued 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.
According to reports, Indian Energy chairman John Wallinger has urged shareholders not to put at risk the deal with Infrastructure India.
Infrastructure India has agreed a share offer for Indian Energy which values the wind farm owner and operator at around £7.9m.
Under the recommended offer, shareholders will receive 100 IIP shares for every 259 Indian Energy shares held.
Wallinger said a shareholder had written to a number of other shareholders encouraging them not to vote in favour of the scheme and the Utilico loan conversion at the forthcoming court meeting and extraordinary general meeting on 5 September.
He said this shareholder is of the belief that CLP Holdings Limited, a Hong Kong power company, is interested in acquiring IEL’s operating assets and believes that if such a transaction were to be concluded, this would result in a more favourable outcome.
But Wallinger says: “There is nothing to preclude CLP making an offer for IEL, but we have received no indication that they are intending to make such an offer.
“Your board therefore continues to believe that the terms of the scheme are fair and reasonable and that it offers the best possible outcome for shareholders in the current circumstances.”