Energy Developments invites Archer to due diligence after revised offer

Energy Developments, the Brisbane-based renewable energy company that’s 32% owned by Infratil, has invited Archer Capital to  begin due diligence after the private equity firm revised its takeover offer.

Archer revised its indicative price for Energy Developments to A$2.80 from an earlier range of A$2.40-A$2.80 in a proposal subject to “an extensive list of conditions,” the energy company said in a statement.

The decision to invite Archer to take the next step in its proposal came after consultation with major shareholders, it said.

Shares of Energy Developments jumped 15% to A$2.29 and have climbed 52% in the past three months. The company said it has also invited other interested parties to begin due diligence.

Last month Infratil indicated it may support a takeover approach by offering Archer an option over 19.9% of Energy Developments.The initial approach from Archer had been conditional and incomplete.

At today’s price, Infratil’s holding in Energy Developments is worth about A$99 million.Infratil fell 0.6% to $1.70 today and has gained 5.5% this year. 

Businesswire.co.nz

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