Consortium looks into stake in Energy Developments

A consortium of private equity funds is investigating the acquisition of Brisbane-based Energy Developments, in which infrastructure investor Infratil has a stake of about 32 percent.

Early this afternoon Infratil confirmed it had been approached by the consortium and said it expected to make a further announcement shortly. Soon afterwards NZX said it had placed a trading halt on the shares of Infratil, at the company's request, pending a material announcement.

Energy Developments said it had received an unsolicited, highly conditional and incomplete proposal from the consortium in relation to the acquisition of 100 percent of its shares.

Infratil had indicated its desire to consider entering into an option agreement with the consortium which would give the consortium a conditional entitlement to 19.9 percent of Energy Developments shares on issue.

A committee of the board, excluding Infratil director representatives, would review the proposal to determine what was in the best interest of all shareholders, Energy Developments said.

Other major shareholders not connected with the proposal would be consulted.

Energy Developments produces renewable energy and low greenhouse gas emission energy, with power stations in Australia, the United States, Europe and Britain.