ACCIONA announces a Takeover Bid for Pacific Hydro
The Board of Directors of Pacific Hydro today recommended its shareholders to accept ACCIONA's offer, as it considers it more favourable than those of other participating groups.
With this operation, conditional on acceptance by at least 90% of Pacific Hydro shareholders, ACCIONA - through its Energy division, led by EHN - confirms its ambitions as an international operator of the sustainable energy model and consolidates its leadership in the renewable energies sector in Australia, where it is currently constructing a 66-megawatt wind farm jointly with Hydro Tasmania and also has a joint-venture with ANZIS.
The Spanish group likewise reinforces its presence in the Asia-Pacific market, one of the areas with greatest growth prospects in the field of clean energies.
José Manuel Entrecanales, CEO of ACCIONA, declared that "the acquisition of Pacific Hydro confirms our group's intention of becoming a leader in the international renewable energy business. This operation reinforces our presence in Southeast Asia and Latin America, balances our generation mix by increasing hydroelectric assets and brings us a solid human team of recognised prestige".
The Chairman of Pacific Hydro, Bernard Wheelahan, expressed satisfaction at ACCIONA's offer, saying that "it is an excellent result for all parties involved in the process".
"Through its wholly-owned subsidiary, EHN, Acciona is one of the world´s leading independent renewable energy companies and its business strategies complement those of Pacific Hydro."
"The combination of the Pacific Hydro assets and personnel with Acciona´s existing business and financial resources creates a powerful company to deliver Pacific Hydro´s pipeline of hydro and wind development projects in Australia and Chile."
Pacific Hydro is listed on the Australian Stock Exchange and has operating assets in renewable energies - windpower and hydroelectric - totalling 296 megawatts. It also has a portfolio of projects in excess of 2,000 megawatts in both technologies in Australia, Southeast Asia and the Pacific Coast.
ACCIONA's offer values Pacific Hydro's total resources at approximately 422 million euros (709 million Australian dollars). The offer of 4.50 Australian dollars per share represents a premium of10.6% on the three-month volume weighted average price of Pacific Hydro and 2.3% compared to the price at close on Thursday 24 March 2005.
The second largest shareholder in Pacific Hydro, AEP Investments Inc, has signed an irrevocable sales agreement with ACCIONA for its 15.7% stake in Pacific Hydro.
ACCIONA is currently negotiating with Industry Funds Management (Nominees) Ltd. (DAF), the largest shareholder in Pacific Hydro, for the possible creation of a joint company majority controlled by Acciona and dedicated to investing in renewable energy projects.
ACCIONA Energía, led EHN, is the world leader in renewable energies, with over 2,600 megawatts installed either for itself or for third parties, of which over 1,600 megawatts are attributable. It has windpower assets in operation or under construction in Spain, France, Germany, Canada, the USA, Ireland and Australia, as well as small-scale hydroelectric, biomass and solar energy facilities.
ACCIONA Energía, through Ingetur, also manufactures aerogenerators of its own design and has just opened a 35,000-tonne biodiesel plant in Navarre.
ACCIONA was advised by Citigroup and Allens Arthur Robinson, while the consultants to Pacific Hydro were Carnegie Wylie and Freehills.