LSE’s Alternate Investment Market-listed Infrastructure India Plc. is acquiring another exchange-listed firm, Indian Energy Plc., which owns and operates wind assets in the country. The all-stock deal for the acquisition of Indian Energy (it owns and operates 41.3 MW across two wind farms) is valued at £7.9 million ($13 million or Rs 57.2 crore).
The deal ensures that the shareholders of Indian Energy will get 8.07 per cent stake in Infrastructure India Plc., which is backed by Guggenheim Global Infrastructure. The stake also represents shares being issued to a lender of Indian Energy, Utilico, who owed the company £2.7 million ($4.43 million). Infrastructure India Plc. has got approval of 27 per cent of the shareholders of Indian Energy for the transaction.
Indian Energy was listed on AIM in September, 2009, raising £9.75 million or $16 million through its IPO. Incidentally, the company has been looking for a financial or strategic investor for some time now. It has reported 55 per cent increase in revenues to £3.43 million ($5.62 million) and a reduction in losses after tax to £2.85 million ($4.67 million) for the year ending March, 2011.
The deal for Infrastructure India Plc. comes after it has recently acquired stakes in two Guggenheim Partners-backed Indian companies – India Hydropower Development Company (it operates hydroelectric power assets) and Vikram Logistic & Maritime Services (it develops and operates transportation and container processing infrastructure).
“The offer will give Indian Energy’s shareholders an interest in a larger, more diversified portfolio, in the fast-growing Indian infrastructure segment,” said John Wallinger, chairman of Indian Energy.
“We are pleased to be acquiring IEL as it increases our exposure to the rapidly growing Indian renewable energy market. IEL has built a strong portfolio of assets, together with a solid operational platform, which can be leveraged,” said Infrastructure India’s chairman Tom Tribone.