Ind adviser says Tilt Renewables buyout offer "not compelling"

Wind farm in Australia. Author: mollybob License: Creative Commons, Attribution-ShareAlike 2.0 Generic

September 17 (Renewables Now) - An independent valuation has confirmed that the joint takeover offer for Tilt Renewables Ltd (NZE:TLT) launched recently by Infratil Ltd (NZE:IFT) and Mercury NZ Ltd (NZE:MCY) is too low and is thus considered “not compelling”.

The two suitors, together holding a combined stake of 71% in Tilt Renewables, seek to acquire the 29% they do not own in the Australasian power producer at a price of NZD 2.30 (USD 1.49/EUR 1.29) per share. According to a statement by Tilt Renewables on Monday, the independent adviser’s report compiled by Northington Partners has concluded that the takeover proposal is “inadequate” after assessing the value of the company’s stock at NZD 2.56-3.01 apiece, with a midpoint of NZD 2.79.

“The Independent Adviser’s valuation confirms our view that the NZD 2.30 takeover offer is inadequate,” said Fiona Oliver, chair of the independent director committee.

Tilt Renewables’ independent directors have already advised minority shareholders not to accept the proposal. At the start of the month, the company issued a letter to its shareholders, stating that “The Independent Directors of Tilt Renewables strongly recommend shareholders do not accept the Offer. You should ignore the offer documents sent to you by the JV and take no action.” The company at the time laid out a list of reasons why it considers the proposal inadequate. Among these is the fact that the offered premium is only 8% above the closing price prior to the bid and that the offer did not fully recognise the target entity’s existing operational assets and the potential of its pipeline of future projects.

Tilt Renewables has eight wind farms with a combined capacity of 637 MW. The company also has a development pipeline that exceeds 1,600 MW of planning approved wind, solar and storage projects.

The directors also pointed out in their letter earlier in September that the offer did not factor in the possibility of Tilt Renewables being successful in the Victorian Renewable Energy Auction Scheme (VREAS). It was announced last week that the company has secured support for a portion of the fully permitted 336-MW Dundonnell wind project in the state's tender.

(NZD 1 = USD 0.646/EUR 0.562)

Join Renewables Now's free daily newsletter now!

More stories to explore
Share this story
About the author
Browse all articles from Veselina Petrova

Veselina Petrova is one of Renewables Now's most experienced green energy writers. For several years she has been keeping track of game-changing events both large and small projects and across the globe.

More articles by the author
5 / 5 free articles left this month
Get 5 more for free Sign up for Basic subscription
Get full access Sign up for Premium subscription