Infratil and Mercury receive regulatory approval for takeover of Tilt Renewables

Infratil has announced its joint venture with Mercury NZ (TLT JV) has obtained approval from the Australian Foreign Investment Review Board (FIRB) to acquire up to a 100% interest in Tilt Renewables. The two companies are already the two largest shareholders in the renewables developer, holding or controlling 51.04% and 19.99% stakes, respectively.

This satisfies the only substantive condition of the takeover offer, which was dispatched to Tilt Renewables yesterday. The 50% acceptance condition has also been satisfied.

The offer remains subject to certain customary conditions. The key outstanding condition is the Infratil-Mercury joint venture confirming that entities with any material contracts with any member of the Tilt Group have provided any required consents, waivers or releases in respect of their rights to terminate, vary, accelerate or enforce such contracts (or similar rights) which may arise as a result of the takeover offer. This is expected to be waived or declared satisfied shortly with assent from Tilt Renewables.

Infratil and Mercury currently intend to waive or declare as satisfied (to the extent permitted by law) the remaining conditions once the material contracts condition is waived or satisfied. Payments to Tilt Renewables shareholders who accept the offer would commence within seven days thereafter.