Electrical investment manager Spark Infrastructure (ASX:SKI)
has rejected a $5 billion takeover bid by private equity giant KKR and superannuation manager Ontario Teachers’ Pension Plan Board.
The energy infrastructure business was tapped on the shoulder twice by the power-duo with two different proposals. Each bid was rejected by Spark with due diligence denied as the board concluded that the bids undervalued the company.
The bid started with an offer of $2.70 per share which would be reduced if any dividends would be paid. The second offer was for $2.80 per share under the same conditions.
The company said it would engage with the consortium and provide limited information to be constructive under a confidentiality agreement.
Spark Infrastructure also announced that Spark Renewables plans to develop a renewable energy generation and storage hub in South-West NSW for up to 2.5 gigawatts following the securing of lease options over land in the region. Spark Renewables is 100 per cent owned by Spark Infrastructure.
Shares in Spark Infrastructure (ASX:SKI)
are trading 7.07 per cent higher at $2.65.