UK renewable energy firm Novera this morning rejected a takeover bid by Terra Firma valuing the company at £90.5 million (€98 million; $144 million).
Infinis Energy, a wholly-owned subsidiary of Terra Firma, said in a statement that under its cash offer Novera’s shareholders would receive 62.5 pence per share. The price offered represents a 30 percent premium to Novera’s closing share price yesterday.
Yesterday Infinis made a block trade in Novera shares, buying around 18.5 million shares, or 13 percent of Novera’s issued share capital, at this 62.5 pence price. Following the transaction Infinis now owns 42.6 percent of Novera. In the statement Infinis described the offer as attractive for Novera shareholders, adding that it “provides certainty, in cash, at a compelling value, particularly in the context of Novera’s share price performance over the last 12 months.”
However, London Stock Exchange-listed Novera said in a filing to the exchange this morning it had rejected the offer, as it “significantly undervalues” the company.
This is not the first time Infinis has tried to buy Novera. Last year the Terra Firma-owned firm and rival bidder 3i Infrastructure fund had both courted Novera, although no formal offers were submitted.
This morning Novera was trading at 65 pence per share, up almost 35 percent on last night’s close.
Novera is involved in electricity generation across the wind, water and landfill gas sectors. It has a generation capacity of 148 megawatts across almost 60 sites in the UK.
Infinis is being advised on the offer by BofA Merrill Lynch. Novera is being advised by Oriel Securities.