Infratil Ltd, the infrastructure investment company, has sold its 32% stake in Brisbane-based Energy Developments for some A$140 million.
The company set up by Lloyd Morrison first flagged its interest in selling its holding in June after it received an unsolicited and incomplete proposal from a group of private equity investors, and threw its weight behind the Greenspark Power Holdings offer in November.
Greenspark paid A$2.75 a share at a total cost of A$139.9 million.
“We intend to increase our investment in the Australian energy sector over time and are actively looking for new opportunities,” said Infratil chief executive Marko Bogoievski in a statement.
Infratil began its review of Energy Developments in 2008 and said the company had struggled to meet expectations to boost shareholder value. The Brisbane-based renewable energy company was valued at between A$3.17 and A$4.09 a share by an independent expert report from Lonergan Edwards & Associates in November.
The investment company has sold more than $391 million of assets and raised over $98 million of new capital since March 31 last year, and said the sale will result in a gain of some $94 million in its 2010 full-year statement.
Greenspark is owned by entities advised by Pacific Equity Partners and made an unconditional bid to takeover Energy Developments at a cash price of A$2.75 a share on Friday. The offer will close on Jan. 22. It now holds some 49% of the company.
