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QIC increases Pacific bid to match rival offer
Posted on Friday, 13 September 2019 12:19
Queensland Investment Corporation (QIC) has sweetened its offer for Pacific Energy to match a bid tabled by a consortium comprising Australian fund manager Infrastructure Capital Group (ICG) and Canada’s OPTrust earlier this week. The suitor’s global private capital arm entered into an agreement to acquire the ASX-listed power station and energy infrastructure owner and operator for an enterprise value of AUD 487.00 million (USD 334.76 million) in July. At the time, the offer of 97.50 Australian cents apiece equated to a premium of 35.4 per cent to the last unaffected close on 22nd July and of 50.1 per cent to the three-month volume weighted average price. However, ICG and OpTrust set the cat among the pigeons on 9th September by submitting a competing proposal of 108.50 cents apiece, merely a week before the first court hearing was scheduled regarding the QIC scheme. The rival bid implies an enterprise value of AUD 535.00 million, based on net debt of AUD 65.10 million at the end of June 2019. In a statement today, Pacific said QIC “remains fully committed” to its acquisition and has revised its own offer to match that of the consortium. Pacific has four wholly-owned subsidiaries, including Kalgoorlie Power Systems, a business operating on a build, own, maintain execution model that was acquired in 2009 for AUD 97.00 million. Contract Power is a specialist provider to the remote power generation sector, while Pacific Energy Victorian Hydro owns and operates 6.00 MW of hydro power generation capacity located 70 kilometres east of Melbourne, Victoria. NovaPower runs a 10.00 MW Nova gas-fired power generation plant in Traralgon, Victoria. The Perth-headquartered group had underlying earnings before interest, tax, depreciation and amortisation of AUD 65.80 million in the financial year ended 30th June 2019, up 49.0 per cent from AUD 44.10 million in FY 2018. Net profit more than tripled to AUD 24.55 million, or AUD 5.72 per share, from AUD 6.78 million, or AUD 1.80 apiece, in FY 2018. © Zephus Ltd