Iberdrola, which has around 1 gigawatt of renewables capacity in Australia, told the market on Wednesday a takeover bid implementation has been entered into with Infigen, with Iberdrola recommended to make a cash takeover for A$0.86 per stapled security for all of Infigen's shares. 

Iberdrola described the acquisition of Infigen as a unique opportunity for the company to consolidate its presence in the "attractive" Australian renewable energy market.

"This offer is the result of a long, friendly relationship between the Iberdrola group and Infigen," the company said. 

It added that acquiring Infigen would help the company become the largest renewables player in the world, with an installed capacity of 33GW.

Infigen for its part, is currently building a 320MW renewable energy park in Port Augusta , and has 670MW  of wind generation assets, 268MW of firming assets and 246MW of additional renewable capacity through offtake PPAs. 

Infigen has an EBITDA and a Net Income of A$165.3 million and $40.9 million respectively, according to its 2019 annual report. 

It comes just weeks after Philippine's UAC Energy Holdings made a takeover bid of 80c per stapled security, valuing the company at A$777 million. 

Infigen's board has unanimously recommended shareholders accept the Spaniards' takeover bid, and each director intends to accept the offer, given the offer price is aa 7.5% premium to UAC's offer price. 

Iberdrola is expected to lodge its Bidder's statement with the ASX and ASIC shortly. 

Infigen is currently trading at 92c