Pacific Hydro recommends IFM takeover offer

Australia's Pacific Hydro (ASX: PHY) has recommended that its shareholders accept a takeover offer by IFM Renewable Energy, Pacific Hydro said in a statement sent to shareholders on May 24. Pacific Hydro is developing several hydroelectric projects in Chile, including the La Higuera project in Region V. Pacific Hydro's board has recommended that shareholders accept IFM Renewable Energy's takeover offer of Aus$5.00 cash per share in the absence of a better proposal. Pacific Hydro appointed Ernst & Young Transaction Advisory Services as an independent expert to prepare a report on IFM Renewable Energy's takeover offer. Ernst & Young valued Pacific Hydro from Aus$4.09-5.28 per share on a fully diluted basis and concluded that IFM's offer is "fair and reasonable" to Pacific Hydro shareholders, Pacific Hydro said. Pacific Hydro advised shareholders not to accept Spanish firm Acciona's takeover offer of Aus$4.90 per share, which it had previously recommended in April.