An Australian-dominated consortium is in line to buy windfarm operator Tilt Renewables for nearly $3 billion.
Tilt Renewables' recently completed operation in southern Taranaki. Photo: RNZ/Robin Martin
The consortium of Queensland Investment Corp., AGL Energy, Australia's Future Fund, and Mercury Energy will pay $7.80 a share for Tilt, which has windfarms on both sides of the Tasman.
Tilt was effectively put on the block last year when its two-thirds owner Infratil announced a review of its investment.
Mercury owned close to 20 percent. Both companies said they will vote in favour of the deal.
The deal will see the Australian companies - collectively called PowAR - take control of Tilt's four Australian windfarms, while Mercury will buy the four New Zealand farms for $770m.
Tilt Renewables chairperson Bruce Harker said: "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 has two wind farms near Palmerston North, one in Otago, and a recently completed operation in southern Taranaki.
Mercury chief executive Vince Hawksworth said the deal was aimed at ensuring New Zealand interests were protected as well as expanding its renewable energy sources.
"Throughout this transaction, Mercury has ensured that these New Zealand assets stay in New Zealand ownership. Completion of this transaction will position Mercury to make an even more significant contribution to New Zealand's de-carbonisation goals," Hawksworth said.
The deal requires a broad range or shareholder and regulatory approvals.
Tilt operated the windfarm assets of Trustpower, before it was split off and listed on the NZX in 2016.
Infratil and Mercury made a bid to buy the whole company in 2018 but the move was opposed by Tilt's board because the price was too low.