The Acciona offer is conditional on 90% acceptance and regulatory approvals.
The Acciona offer follows a comprehensive strategic review process initiated by Pacific Hydro's independent directors last October.
The consideration offered by Acciona values Pacific Hydro at about A$709 million of equity value or A$866 million including debt.
The A$4.50 cash per share offer represents a premium of 43.6% to the three-month volume weighted average price of Pacific Hydro shares before the announcement of the strategic review.
Acciona is involved in the development, construction and management of infrastructure and renewable energies, with a market capitalisation in excess of €4.3 billion.
Pacific Hydro chairman Bernard Wheelahan welcomed the offer as an excellent outcome for all shareholders.
“Our two companies are a natural combination. Through its wholly-owned subsidiary, EHN, Acciona is one of the world’s leading independent renewable energy companies and its business strategies complement those of Pacific Hydro," Wheelahan said.
“The combination of the Pacific Hydro assets and personnel with Acciona’s existing business and financial resources creates a powerful company to deliver Pacific Hydro’s pipeline of hydro and wind development projects in Australia and Chile."
Acciona Group Executive Director Juan MuroLara said the offer confirmed Acciona's determination to be an international leader in renewable energy generation.
"This offer reinforces our presence in two strategic countries, Australia and Chile, adds approximately 300MW of total installed capacity, strengthens Acciona Energia's development pipeline, balances the technology mix by increasing our hydroelectric generation capacity, and contributes a highly reputed and experienced management team," MuroLara said.
Pacific Hydro’s second largest shareholder, AEP Investments Inc, has entered into a prebid acceptance agreement with Acciona in respect of its 15.7% interest in Pacific Hydro.
Pacific Hydro’s largest shareholder, Industry Funds Management (Nominees) Ltd, is in preliminary discussions with Acciona in relation to a potential commercial alliance for investment in renewable energy projects.
