Independent advisor deems Tilt Renewables takeover offer inadequate

The Independent Directors of Tilt Renewables have published the Independent Adviser’s Report on the NZD2.30 (US$1.5) per share takeover offer from the Infratil and Mercury NZ joint venture. The report was prepared by Northington Partners.

The adviser has concluded that the offer price is lower than the underlying value of the company and has concluded it is not compelling. The report values Tilt Renewables at NZD2.56 (US$1.6) to NZD3.01 (US$1.9) per share with a midpoint of NZD2.79 (US$1.8). This valuation confirms that the NZD2.30 (US$1.5) takeover offer is inadequate.

Tilt Renewables is strongly recommending that shareholders reject the offer, advising shareholders to ignore the takeover documents sent to them by Infratil and Mercury.

In response, Infratil has announced that it is reviewing the statement released containing the report. The company's Chief Executive Marko Bogoievski commented:

"It is clear that there are significant differences between Infratil's view of a fair and reasonable offer price and the view of the Tilt Renewables independent directors. We believe there are a number of areas where the independent adviser's assumptions are significantly more favourable than market comparatives, with material differences in both the expected rates of return on contracted and uncontracted cash flows, as well as the valuation of the Dundonnell wind farm development."

Infratil expects to respond comprehensively to the statement within the next week.