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- Shares in Tilt Renewables (TLT) have soared to all-time highs following news of a proposed $2.7 billion takeover by a consortium of companies
- A consortium of companies known as Powering Australian Renewables (PowAR) will acquire Tilt’s Australian business
- Meanwhile, Mercury NZ, which holds a 19.9 per cent stake in Tilt, will purchase the company’s New Zealand assets
- Tilt’s existing shareholders will receive NZ$7.80 (roughly A$7.23) per share in cash
- The deal comes amid a major push for decarbonisation and a move towards clean, renewable energy
- Tilt Renewables is up 14.87 per cent to $7.03 per share
Shares in Tilt Renewables (TLT) have soared to all-time highs following news of a proposed $2.7 billion takeover by a consortium of companies.
According to the terms of the deal, Powering Australian Renewables (PowAR) — a partnership between Tilt’s second-largest shareholder AGL Energy (AGL), investment manager QIC and Australia’s sovereign wealth fund — will buy Tilt’s Australian business.
Meanwhile, Mercury NZ, which holds a 19.9 per cent stake in Tilt, will purchase the company’s New Zealand assets.
Tilt’s existing shareholders will receive NZ$7.80 (roughly A$7.23) per share in cash.
“The board is pleased that, with these new owners, the transition to renewables in Australia and New Zealand will continue to accelerate,” Tilt Chairman Bruce Harker said.
The deal comes amid a major push from both companies and investors for decarbonisation and a move towards clean, renewable energy, and provides the consortium access to Tilt’s 20 wind farms that are either operational or under development.
Infratil, Tilt’s largest shareholder, and Mercury NZ have both said they will vote in favour of the deal at a meeting likely to be held in around four months.
In exchange for its 65.5 per cent stake, Infratil will receive approximately $1.79 billion, while Mercury NZ said the acquisition would be immediately accretive and add roughly $46.38 million to its 2022 earnings.
AGL said it would contribute $341 million to fund its portion of PowAR’s deal for Tilt’s Australian operations.
“The proposed acquisition by PowAR will provide more renewable energy options in AGL’s generation portfolio, further supporting our orderly transition away from coal-fired power and responding to our customers’ increasing appetite for cleaner energy,” said AGL’s Chief Executive Brett Redman.
Tilt Renewables is up 14.87 per cent to $7.03 per share at 12:24 pm AEDT.
