Indian Energy gets 31 pence per share offer
Shares in India-focused wind farm developer Indian Energy (LON:IEL) gained more than a penny-and-a-half to trade for 27 pence each in morning trading after it announced an almost £8 million takeover offer had been made for the company.
The firm – whose shares had shown strength in preceding days, having traded for less than 23.5 pence each a week-and-a-half ago – also announced results for the year to 31 March 2011.
Infrastructure India will offer 100 of its shares for every 259 shares held by investors in Indian Energy. This values Indian Energy at around 31 pence per share.
The company said that the offer represents a premium of 21.6 per cent based on the closing price of Indian Energy on 20 July.
Indian Energy’s directors said they consider the terms of the proposed offer to be “fair and reasonable” and that they intend to recommend unanimously that Indian Energy shareholders vote in favour of the offer.
Indian Energy’s results showed that it increased revenues by 55 per cent to £3.4 million during its 2011 financial year, while it reduced its loss after tax to £2.9 million from £3.4 million in 2010.
The firm had cash and cash equivalents of £1.5 million and net debt of £19.6 million at the end of March (31 March 2010: £3.7 million and £7.8 million respectively).
“We are delighted to deliver a year-on-year improvement in Indian Energy’s financials for the year to 31 March 2011,” said Rupert Strachwitz, Indian Energy’s chief executive. “This is a reflection of the commissioning of the Theni Project, which was completed in August 2010. Despite missing the bulk of the monsoon season at Theni, we are delighted that we can report a 55 per cent increase in revenue."