Australian backers launch Windlab takeover bid

Australian investors Federation Asset Management has launched a takeover bid for compatriot developer Windlab, proposing to buy all the outstanding shares in the wind-solar hybrid project specialist.

Alongside Eurus Energy, Windlab jointly owns the 61MW/4MWh first phase of the Kennedy Energy Park
Alongside Eurus Energy, Windlab jointly owns the 61MW/4MWh first phase of the Kennedy Energy Park

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It made an offer of A$1 per share ($0.68/share) — a 38.9% increase on Windlab’s closing share price on 17 January — four months after agreeing to become the developer’s largest shareholder.

However, the offer is half Windlab’s peak share value — in September 2017 — as the developer has faced construction delays with its flagship 1GW Kennedy hybrid project in Australia.

Windlab’s stock opened at A$0.96 on 20 January, up 33.33% from its previous close.

In a statement to the Australian Stock Exchange, Windlab's directors said they intend to unanimously recommend the proposal to the company’s shareholders.

When Federation agreed to acquire an 18.4% interest in Windlab in September 2019, the asset manager’s head of renewable energy Stephen Panizza said it planned to support the developer in completing its renewable projects.

Windlab has helped develop nearly 600MW of operational wind farms in Australia, Canada and South Africa.

It also has stakes in more than 2GW of hyrbid capacity in development, including the up-to 1GW Kennedy Energy Park in Queensland, Australia, and Africa's first wind-solar-storage project.

Federation has the exclusive rights to complete due diligence and negotiate a scheme implementation agreement and other documents before 21 February.

The transaction would be subject to a number of conditions, including completion of confirmatory due diligence, any required regulatory approvals, Windlab shareholder approval and court approval, the developer confirmed to the Australian Stock Exchange.

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