Australia's Infigen backs revised Iberdrola takeover offer

FILE PHOTO: A fence is seen in front of wind turbines that are part of the Infigen Energy Capital Wind Farm located on the hills surrounding Lake George, near the Australian capital city of Canberra, Australia February 21, 2018. REUTERS/David Gray

(Reuters) - Australian wind and solar firm Infigen Energy Ltd IFN.AX on Tuesday recommended an offer from Iberdrola IBE.MC to its shareholders, after the Spanish company waived most conditions from its A$856 million ($589 million) bid.

Iberdrola and rival Philippine conglomerate Ayala Corp AC.PS both raised their respective bids for Infigen on Monday, hoping to take control of its seven wind farms and a large pipeline of projects.

Ayala increased its offer for the Australian company to A$0.86 per share and declared it free of all conditions, while Iberdrola raised its bid to A$0.89.

Infigen said on Tuesday that Iberdrola had also waived the conditions on its bid, excluding the conditions that it receives approval from Australia’s Foreign Investment Review Board (FIRB) and is accepted by more than half of Infigen shareholders.

Infigen said in a statement it expected both these conditions to be met, and urged shareholders to reject Ayala’s takeover approach.

Reporting by Shashwat Awasthi in Bengaluru; editing by Richard Pullin