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Tilt Renewables soars on takeover deal

Tilt Renewables soared to an all-time high on Monday after it announced it had entered into a Scheme Implementation Agreement with Powering Australian Renewables and Mercury NZ, where PowAR will acquire Tilt’s Australian business and Mercury will acquire Tilt’s New Zealand business.


Tilt shareholders will receive NZ$7.80 per share, a 99.0% premium to Tilt’s closing share price on the NZX of NZ$3.92 per share on 4 December 2020.


The decision follows a competitive sale process during which Tilt Renewables received multiple binding proposals to acquire the company.


Major shareholder, Infratil, which holds a 65.5% shareholder in Tilt Renewables also confirmed its support for the acquisition proposal. Mercury, currently Tilt’s second-largest shareholder, behind Infratil, with a 19.92% shareholding has also agreed to vote its entire shareholding in favour of the scheme.


Background


On December 7, Infratil announced a strategic review of its shareholding in Tilt Renewables, including assessing the potential divestment of its shareholding. As a result of this strategic review, Tilt Renewables announced on February 4 that it had received a number of non‐binding indicative proposals to acquire 100% of the shares in the company. The Board reviewed these proposals and decided to grant a number of parties access to due diligence materials and executive management to enable these parties to prepare binding offers. After reviewing the binding proposals the Board of Tilt Renewables determined that the above scheme is in the best interests of the company.


Bruce Harker, Chair of Tilt Renewables, 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.”