Australian wind energy developer Windlab has received a non-binding and indicative offer from investor Federation Asset Management Holdings to acquire all outstanding shares in the former company.
The offer is for A$1 (€0.62) a share and represents a premium of 38.9% on the most recent closing price, Windlab said.
Funds managed or advised by Federation Asset Management currently own 18.7% of the company.
The directors of Windlab said in a statement to the ASX that they believe the proposal presents “shareholders with opportunity to realise their investment in Windlab at a significant premium to the current share price”.
They added that “subject to an independent expert concluding that the proposal is in the best interests of shareholders not associated with Federation and in the absence of a superior proposal the directors of Windlab intend to unanimously recommend the proposal” to shareholders.
Windlab said the proposal is subject to a number of conditions, including completion of confirmatory due diligence satisfactory to Federation, any required regulatory approvals, entering into mutually acceptable transaction documentation and Windlab shareholder and court approval.
The company has granted Federation a period of exclusivity up until 21 February to carry out due diligence and negotiate implementation, with an option to extend to 26 February if more time is needed.
At the end of the exclusivity period, Windlab said that if it and the Federation have entered into a binding scheme implementation agreement, “an explanatory memorandum in relation to the proposal will subsequently be provided to Windlab shareholders, after which a meeting of shareholders will be scheduled for shareholders to consider and vote on the proposal”.
Moelis Australia is acting as financial adviser to Windlab and Dentons legal adviser.