PE group eyes renewable energy supplier(4)

Infrastructure investor Infratil has granted Archer Capital a call option over part of its holding in Energy Developments, the Australian renewable energy supplier, after holding talks with the suitor. Last week an unnamed consortium of private equity funds made a 100 percent offer for the company.

New Zealand-headquartered infrastructure investor Infratil has granted Archer Capital, the Australian private equity manager, a call option over part of its shareholding in renewable energy supplier Energy Developments.

Energy Developments:
call option granted

The option covers 19.99 percent of Energy Development’s shares. Infratil is the largest shareholder in the company, holding over 32 percent of its shares outstanding. An exercise price for the call option has not yet been agreed. The option will only become effective once a price has been agreed between Archer and Infratil, and a takeover bid is made. Should this occur, Infratil would have the option to sell the balance of its remaining shares to Archer.

Last week Energy Developments revealed it had received an incomplete proposal from an unnamed consortium of private equity funds relating to a 100 percent acquisition of the company.

Energy Developments is an Australia-based renewable and remote-area energy supplier with operations in Australia, the US, the UK and continental Europe. Last year it earned revenues of around A$195 million (€111 million; $153 million).

Last month Infratil reported a loss for the second consecutive year, losing NZ$191 million (€85 million; $118 million).