Mercury in $3 billion takeover bid for Tilt Renewables

mercury energy

SYDNEY -

Mercury Energy and an Australian partner appear to have won the race to buy Tilt Renewables, an Australasian wind farm developer which was spun out of TrustPower, bidding almost $3 billion.

Yesterday Tilt Renewables announced that it had entered a scheme implementation agreement under which it was proposed that PowAR would acquire its Australian business and Mercury would acquire the New Zealand business.

Conducted through a scheme of arrangement, Tilt shareholders will be offered $7.80 a share, valuing Tilt at $2.96b.

Yesterday morning shares in Tilt opened about 18 per cent up at $7.65.

In early December Infratil, which owns around two thirds of Tilt’s shares, announced it was undertaking a review of its investment after receiving approaches.

According to a report in the Australian Financial Review, the transtasman bid beat out other parties including ASX-listed APA Group, Canadian pension fund CDPQ and Australian fund manager Infrastructure Capital Group.

“This compelling acquisition proposal is a result of Tilt Renewables’ constant focus on delivering long-term value for shareholders and the board is pleased that, with these new owners, the transition to renewables in Australia and New Zealand will continue to accelerate,” Tilt’s chairman Bruce Harker said.

Just prior to the announcement, Tilt shares had been trading for less than $4.

Mercury is already Tilt’s second largest shareholder, at just under 20 per cent. Both Infratil and Mercury have agreed to vote in favour of the scheme. The deal values Tilt’s New Zealand business at $770m, however the value of Mercury’s existing shareholding is around $585m, meaning the company will increase debt by around $185m.

Related News

renewable power fuel cell

New fuel cell could help fix the renewable energy storage problem

LONDON - If we want a shot at transitioning to renewable energy, we’ll need one crucial thing: technologies that can convert electricity from wind and sun into a chemical fuel for storage and vice versa. Commercial devices that do this exist, but most are costly and perform only half of the equation. Now, researchers have created lab-scale gadgets that do both jobs. If larger versions work as well, they would help make it possible—or at least more affordable—to run the world on renewables.

The market for such technologies has grown along with renewables: In 2007, solar and wind provided just 0.8%…

READ MORE

Opinion: The dilemma over electricity rates and innovation

READ MORE

B.C. Challenges Alberta's Electricity Export Restrictions

B.C. Challenges Alberta's Electricity Export Restrictions

READ MORE

In 2021, 40% Of The Electricity Produced In The United States Was Derived From Non-Fossil Fuel Sources

READ MORE

meeting in halifax

Canada to spend $2M on study to improve Atlantic region's electricity grid

READ MORE