FGEN and ACEN are two energy companies operating under clean energy banner, although, both still have significant fossil fuel investments. ACEN is generating significant power from coal while FGEN is on much cleaner natural gas.
Both energy companies attracted well known global institutional investors. FGEN caught the attention of KKR, a pioneer in private equity and alternative asset investing and management. On the other hand, ACEN attracted GIC Pte. Ltd., one of the two sovereign wealth funds of the Republic of Singapore.
On May 27, KKR through Valorous Asia Holdings made an offer to acquire around 9% of FGEN shares at 22.50 Pesos each. The offer was made when FGEN shares were trading at around 17.74 Pesos. The tender offer of KKR represents more than a 25% premium over FGEN’s share price prior to the offer.
FGEN share has since climbed to 30.85 from the KKR tender offer price of 22.50.
In the case of GIC’s investment in ACEN, GIC through its affiliate Arran Investment offered to buy primary and secondary shares of ACEN at a price of 2.97 Pesos a piece. Just today 18 March 2021, GIC completed the acquisition of four billion primary shares of ACEN for 2.97 Pesos a piece. The acquisition price is a significant discount to the share price of ACEN as of the completion date. ACEN closed at 6.98 Pesos on 18 March 2021. The GIC acquisition price of ACEN shares is a 57% discount to ACEN’s market determined share price as of 18 March 2021. GIC’s acquired ACEN shares must be approved by the shareholders for listing by 30 June 2021. If not, Arran will have the “put option” to sell back the shares to the Ayala’s.
Will the GIC investment into ACEN have a similar effect to the KKR investment into FGEN, pushing the shares up?
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