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Spark Infrastructure (ASX:SKI) rejects takeover offers

ASX News
ASX:SKI
15 July 2021 15:00 (AEST)

Spark Infrastructure (SKI) has knocked back two acquisition proposals from a North American investment consortium, “unanimously” affirming the bids undervalued the company.

The company quelled speculation regarding the trading halt it had entered the day prior by confirming it had received a conditional and non-binding indicative
proposal from the Ontario Teachers’ Pension Plan Board and Kohlberg Kravis
Roberts & Co.

Spark rejected the consortium’s first offer, which sought to acquire all ordinary Spark Infrastructure stapled securities in an all-cash scheme at of $2.70 apiece.

The ASX-lister then received a second revised offer at an increased price of A$2.80 per stapled security, which was rejected after the board “unanimously concluded” the price undervalued Spark Infrastructure.

Although the offers did not make the due diligence stage, Spark advised it was prepared to provide limited information on its business and prospects once the consortium signs a confidentiality agreement.

Broadly, Spark said it has a highly attractive future and would carefully consider further proposals.

Spark Infrastructure is being advised by Goldman Sachs and Herbert Smith Freehills.

Spark Infrastructure shares are looking to close today’s session up 6.05 per cent at $2.63.

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