Naturgy gets reward for power and renewables pivot

Australian fund manager makes a premium bid based on the firm’s move away from gas, LNG and international expansion

Shares in Spanish utility Naturgy jumped by more than 15pc in a single day in late January after Australia’s IFM declared it intended to make an offer for up to 22.69pc of its share capital. Naturgy’s shares rose by almost €3 ($3.6) from just over €19.20/share to almost €22.20/share on 26 January. IFM’s offer is €23/share, representing, it says, a premium of almost 20pc to Naturgy’s pre-offer price. The offer has been declined by two of Naturgy’s largest strategic investors and may also be rejected by its largest single shareholder, bank La Caixa. But IFM’s bid, which is conditional on it being able to buy a minimum 17pc stake, “has a high chance of succeeding” with enough holders of Naturgy