Bidding War Emerges For Pacific Energy

By Glenn Dyer | More Articles by Glenn Dyer

We have a takeover battle for small power group, Pacific Energy with news of a higher takeover offer for the group.

Pacific Energy said yesterday that it had received an offer from a Canadian consortium valuing it at about $466.7 million, trumping a rival bid already recommended by the board from QIC in Brisbane.

Fund manager Infrastructure Capital Group and Canada’s OPTrust have offered $1.085 per share in cash, Pacific Energy said.

That compares to the 97.5 cents a share offer ($419.3 million) from QIC Private Capital in July.

The new offer, which includes a final dividend of 1.5 cents a share, is an 11.3% premium to the QIC offer and a nearly 12% above the last sale on Monday.

Pacific Energy said QIC has the right to submit a matching proposal to its board over the next four business days, until which time the board will continue to formally recommend the QIC offer.

The new proposal has received approval from the Foreign Investment Review Board, Pacific Energy said.

Major Pacific shareholder Kenneth Hall says he will vote his 48.7% of share in favour of the QIC scheme subject to its counteroffer and an independent expert report.

Pacific Energy runs four power companies: Kalgoorlie Power Systems, Contract Power, Pacific Energy Victorian Hydro, and NovaPower.

Also on Tuesday Sydney funds group, Ryder Capital said it held a 2.98% state in Pacific acquired an average price of 97 cents.

Pacific shares closed at $$1.105, up 13.9% on the day and a premium to the latest 41.085 a share offer as investors await a new offer from QIC, or even someone else.

Glenn Dyer

About Glenn Dyer

Glenn Dyer has been a finance journalist and TV producer for more than 40 years. He has worked at Maxwell Newton Publications, Queensland Newspapers, AAP, The Australian Financial Review, The Nine Network and Crikey.

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