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‘Guerrilla’ Hands finally seizes control of Novera
30.11.09
Corporate raider Guy Hands was accused of “guerrilla tactics” in the City today after he finally won control of green energy group Novera.
In a hostile takeover campaign which could herald the private equity baron becoming a major player in the burgeoning, highly subsidised renewable energy sector, his Infinis Energy in effect took control of Novera at the third attempt over the weekend.
Infinis, part of Hands's Terra Firma conglomerate and whose existing interests in electricity from methane gas at landfill sites provides a fit with Novera, won the support of more than 50% of Novera's investors after a seven-week battle. In the past week he had upped his offer twice from 62½p to 77p a share valuing Novera at £111 million.
Hands wants Novera's onshore windfarms and its planning permission for more turbines. But his tactics brought sharp criticism from blue-chip investors such as 3i, Aviva and Caledonia — though it was their capitulation which finally forced Novera's management to throw in the towel.
Analyst Andrew Shepherd-Barron at brokers KBC Peel Hunt said; “Guerrilla tactics pay off for Infinis. Infinis could have made and justified a knock-out blow at any time. It instead chose the guerrilla route of picking off the back marker.”
