October 10 (Renewables Now) - Infratil Ltd (NZE:IFT) and Mercury NZ Ltd (NZE:MCY) have extended their joint takeover offer for Tilt Renewables Ltd (NZE:TLT), without increasing the price.
The two suitors, which together hold a combined stake of 71% in Tilt Renewables, want to acquire the 29% they do not own in the renewables developer at NZD 2.30 (USD 1.49/EUR 1.29) per share.
The closing date of the offer has been extended from October 15 to October 29.
Infratil said in a statement on Tuesday that it considers the offer price to be fair and attractive and that the bid provides certain value to shareholders at a time when Tilt Renewables will need to raise new equity to fund the 336-MW Dundonnell wind farm development. Tilt Renewables recently secured a 15 year off-take agreement in the Victorian Renewable Energy Auction Scheme for part of Dundonnell's output.
Tilt Renewables said in a letter to shareholders today that the independent directors still recommend not accepting the "inadequate" offer.
In a letter on Monday, Tilt Renewables said that acceptances of the offer were less than 1% of the shares of Tilt Renewables, excluding the exercise of the option over the shares held by TECT Holdings Ltd which was entered into prior to the offer.
With respect to Dundonnell, Tilt Renewables said today that it will likely seek more capital in the future to fund the project but that "an objective of the proposed capital raising structure is to target an outcome where shareholders who do not participate, or do not fully participate, are not financially worse off."
(NZD 1 = USD 0.646/EUR 0.562)