November 19 (Renewables Now) - The independent directors of Tilt Renewables Ltd (NZE:TLT), the acquisition target of Infratil Ltd (NZE:IFT) and Mercury NZ Ltd (NZE:MCY), have once again advised against the suitors’ offer, considering it “inadequate.”
Infratil and Mercury NZ, 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 1.58/EUR 1.38) per share. The closing date of the offer has been extended once again to November 30 and will not be prolonged further. The offering price has not been increased, Tilt Renewables said on Thursday.
The independent directors of Tilt Renewables "strongly" recommend that shareholders should reject the proposal as it does not correspond to the underlying value of the company and does not take into account “the positive announcements” of Tilt Renewables since the offer was launched. The suitors have received just 1.4% of further acceptances in the last two weeks since the prior extension.
In September, independent adviser’s report compiled by Northington Partners 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.
(NZD 1.0 = USD 0.687/EUR 0.602)