Novera Energy Rejects Infinis Take-over Offer

Novera Energy PLC based in London rejected a take-over offer worth GBP 91 million on Wednesday. The renewable energy firm rejected the offer put forth by Infinis Energy, which is the largest shareholder for Novera Energy. Novera stated that the offer significantly undervalued the renewable energy companies assets.

Infinis Energy is a UK renewable energy firm which is privately owned by Terra Firma. The company made an offer for Novera on Wednesday at 62.5 pence a share, which was a 30 percent premium over Tuesday’s closing price. Currently Infinis holds 42.6 percent of Novera’s shares after it purchased them on Tuesday.

Novera’s board advised shareholders to reject the proposed buy-out should a more formal offer be made citing that it is too low. Professional analysts agree that Infinis has undervalued the company. Andrew Shepherd-Barron said Wednesday in a research note that the ‘cheeky’ cash bid completely undervalues Novera and a 80 pence to 85 pence per share offer would be more appropriate.

Ken Rumph an analyst for Nomura Code stated that Infinis had previously bid for Novera back in 2008 for 90 pence per share, but he also added that since Infinis now has such a large stake in the company, a higher-bid is much less likely.

Infinis has said that they expect their position to become more strategic when they add Novera’s 46 landfill gas sites to their company roster. Currently Novera has wind farms and hydro energy facilities which would help Infinis expand their renewable energy portfolio.