AFR StreetTalk speculated this morning on an IFN takeover.
The juice:
(30 percent shareholder UK-based The Childrens Investment Fund) is said to be extremely uninterested in anything less than $1 a share and only really tempted to talk above $1.20 to $1.30. So that means Brookfield can forget about buying any more shares at 58.5¢, which is where it scooped up a toehold 9 per cent stake last week in a trade via Morgan Stanley.
Things have only become more interesting since. Brookfield met with Infigen to talk about its intentions, which did not include a takeover in the near term, but did include partnering on projects and the like.
But Infigen’s shareholders know Brookfield is not generally in the business of taking 9 percent stakes in listed companies just so it can either sit quietly or partner on a couple of projects.
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Ash here.
I am not an IFN investor because it is clean and green, though that is nice and impresses my BBQ mates. On-shore wind is the cheapest electricity source. It simply has the best margins and will make money when every other form of generation is going bust.
If Brookfield wants to put IFN into play, it will have to fight the likes of AGL and Origin, who would enjoy profound synergies adding a breezy 670Mw and a slate of shovel-ready projects to their portfolios.
Bring it on, Brookfield!
Ash
IFN Price at posting:
70.0¢ Sentiment: Buy Disclosure: Held
