Energy Developments rejects takeover offer
October 18, 2009
Energy Developments Limited (ENE) says it has received a takeover offer from private equity firm, Pacific Equity Partners. The offer put forward by Pacific Equity ("PEP") is for $2.65 per Energy Developments share, valuing the company at around $400 million.
However, Energy Developments said that the offer does not reflect the intrinsic long-term value of the company.
Energy Developments also noted that the share price movement – the company’s shares closed at $2.41 on Friday, the same price they were in mid-July – was a poor indicator as 80% of the company’s stock is held by just 10 investors.
Despite not being prepared to accept the scheme of arrangement, the board said it would not stand in the way of PEP making an off-market takeover bid for the company.
At the same time Energy Developments, which produce renewable and low emission energy have abandoned talks with an international infrastructure specialist fund manager for UK and French landfill gas power generation plants, saying the contractual terms were ‘unacceptable’.
However, Energy Developments said that the offer does not reflect the intrinsic long-term value of the company.
Energy Developments also noted that the share price movement – the company’s shares closed at $2.41 on Friday, the same price they were in mid-July – was a poor indicator as 80% of the company’s stock is held by just 10 investors.
Despite not being prepared to accept the scheme of arrangement, the board said it would not stand in the way of PEP making an off-market takeover bid for the company.
At the same time Energy Developments, which produce renewable and low emission energy have abandoned talks with an international infrastructure specialist fund manager for UK and French landfill gas power generation plants, saying the contractual terms were ‘unacceptable’.
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