Infigen Energy is to build the 113.2 MW Bodangora wind farm near Wellington in New South Wales, its first new wind farm in many years. The company has launched an underwritten capital raising of $151 million to pay for the equity component of the project and also to possibly refinance its Global Facility and Woodlawn Project Finance Facility. The institutional entitlement offer and the retail entitlement offer are at 89 cents per security.
The takeover inquiry that helped fire Infigen Energy’s share price earlier this year is no longer live, but Infigen Energy’s managing director, Miles George, said the company remains open to proposals that can add value to shareholders. He said the earlier potential takeover discussions were deemed to not add as much value as other options such as the improving operating conditions and pursuing the company’s development portfolio.
The prospect of Infigen Energy developing more wind farms has picked up with the company selling its US solar energy developments, entering a first of its kind wind risk hedge for 500 megawatts of its windfarms, and welcoming the passing of the Federal Government’s revised Renewable Energy Target that gives certainty to developers.
Infigen Energy had received an offer of $0.80 from UAC Energy which the broker considered a fair price, albeit the board hed not yet recommended the offer. Now international wind energy company Iberdrola has offered 86c.
Morgans believes Infigen Energy's approach to delivering energy to customers is the future of the National Electricity Market and remains confident the company can grow retail volumes and earnings in the face of declining carbon prices.
Infigen has announced financial close on the Cherry Tree wind farm on a "capital lite" basis with John Laing Group, which will acquire 100% of the project. The company also took an impairment on its development book due to higher costs and delays.