News blog
Indian Energy Ltd
- BY: Andrew Hore |
- POSTED: 21/07/2011 |
Wind farms developer Indian Energy Ltd is recommending an all-share bid from Aim-quoted Infrastructure India even though it values the company at well below its net asset value.
The offer is 100 Infrastructure India shares for every 259 Indian Energy shares. Indian Energy’s board approached Infrastructure India after bid talks with another potential buyer fell through.
At 26.38p a share, up 0.88p, Indian Energy is valued at £6.73m. Shares in Infrastructure India fell 4.88p to 75.5p. That values each Indian Energy shares at 29.15p and the company at £7.44m. The net asset value of the loss-making company was £11.2m at the end of March 2011.
Utilico Emerging Markets owns 20.4% of Indian Energy and 5.9% of Infrastructure India and it has accepted the bid.
Indian Energy planned to develop 300MW of generating capacity but it did not have the cash to do that. Net debt was £19.6m at the end of March 2011.
Indian Energy joined Aim on 2 September 2009. The flotation raised £9.75m at 82p a share and this valued the company at £20.3m. The costs of the flotation were £1.15m. Indian Energy also converted £5m of preference shares into ordinary shares at the placing price. The preference shares were issued back in June 2007 when Indian Energy also raised £5m from a placing at 130p a share.
Download the June 2011 edition of AIM Journal at http://www.hubinvest.com/AIMPDFJuly2011_22.pdf
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