Infratil maintains offer price for Tilt Renewables, disputing independent advisor

Infratil has responded to Tilt Renewables' Independent Adviser’s Report regarding its NZD2.30 (US$1.54) per share takeover offer for the company, proposed in a joint venture with Mercury NZ. Tilt Renewables' Independent Adviser concluded that the offer price is lower than the underlying value of the company and included a valuation range for Tilt Renewables shares of between NZD2.56 (US$1.7) and NZD3.01 (US$2.02) per share.

Infratil's response details a number of areas where the Independent Adviser's assumptions seem significantly more favourable than market comparatives. As such, Infratil commissioned an independent report from Grant Thornton Corporate Finance Pty Ltd to review the assumptions underlying the Northington Partners' valuation.

Grant Thornton has concluded that a number of assumptions adopted by Northington are overly optimistic and do not fully allow for the risks of the Tilt Renewables operating portfolio, leading to a valuation range that is higher than fair market value.

As a result, Infratil continues to believe that the NZD2.30 (US$1.54) offer price is attractive and fair. Infratil strongly encourages shareholders who are unlikely to participate in future equity raising, or who invest primarily for dividend yield, to consider whether accepting the offer is appropriate for them.

The Offer is scheduled to close on 15 October 2018 (unless extended in accordance with the Takeovers Code).  Tilt Renewables shareholders that accept the offer will be sent NZD2.30 (US$1.54) cash per share within seven days of receipt of their acceptance.