Join our daily newsletter At The Bell to receive exclusive market insights
- Tilt Renewables (TLT) plans to return $260 million to its shareholders via a pro-rata share buy-back
- The company’s balance sheet currently includes $535 million in cash, largely from the sale of its Snowtown 2 Wind Farm
- Following the buy-back, the company will remain in a strong financial position, with $275 million in cash and no debt refinancing needed until 2023
- Tilt Renewables (TLT) is up 4.64 per cent to trade for $2.93 per share
Tilt Renewables (TLT) plans to return $260 million to its shareholders via a pro-rata share buy-back.
The company develops, owns and manages a portfolio of energy generation assets across Australia and New Zealand.
Tilt’s current balance sheet includes approximately $535 million in unrestricted cash, which came largely from the sale of its Snowtown 2 Wind Farm in December last year.
However, this amount does not include cash required for the development of its Dundonnell and Waipipi Wind Farms, which are under construction and fully financed.
In addition, Tilt holds a diverse pipeline of development projects collectively worth 3000 gigawatts, although the company is aware of its need to retain cash in order to bring these projects to fruition.
Deion Campbell, CEO of Tilt Renewables, said that the timing of the capital return may provide some relief to its shareholders who may be struggling with the financial implications of COVID-19.
“This is a great opportunity for TLT to let its 8100 shareholders benefit directly from the highly successful sale of Snowtown 2, whilst still leaving plenty of cash available for us to pursue growth opportunities, including from our industry-leading development pipeline,” Deion added.
While no indication has been given as to when the buy-back might occur, it’s likely to be undertaken by way of a court-approved scheme of arrangement. This is in accordance with Part 15 of the New Zealand Companies Act 1993.
Tilt Renewables stressed that, following the buy-back, it will still hold a very strong balance sheet. Roughly $275 million will remain available to pursue growth opportunities, and no debt refinancing needs to occur until 2023.
Tilt also drew attention to its “healthy, largely contracted, annual cashflow” from its operating assets.
Tilt Renewables (TLT) is up 4.64 per cent to trade for $2.93 per share at 11:02 am AEST.
