Infratil supports acquisition proposal for Tilt from a consortium of Powering Australian Renewables and Mercury NZ

Infratil welcomes the announcement by Tilt Renewables Limited (Tilt) that it has entered into a Scheme Implementation Agreement (SIA) with Powering Australian Renewables (PowAR) and Mercury NZ Limited (Mercury). Under the SIA, it is proposed that PowAR will effectively acquire Tilt’s Australian business and Mercury will acquire Tilt’s New Zealand business by way of a Scheme of Arrangement (Scheme), and Tilt shareholders will receive NZD7.80 (US$5.61) per share in cash (Transaction). Tilt’s announcement is attached.

As part of the Transaction, Infratil has entered into a binding Voting Deed with PowAR under which Infratil has committed to vote all the Tilt shares that it controls, representing 65.5% of Tilt shares on issue, in favor of the Scheme.

Subject to any pre-completion dividends, Infratil’s gross proceeds from the sale of its 65.5% stake in Tilt will be approximately NZD1,926.1 million (US$1,385.14 million). As of 30 September 2020, Infratil’s carrying value of Tilt was NZD704.1 million (US$506.34 million) and the sale price represents a ~99% premium to the Tilt share price prior to Infratil’s 7 December 2020 announcement.

Infratil’s investment in Tilt originated when Tilt was part of Trustpower and Infratil has been a strong supporter of the company’s growth since Tilt was demerged from Trustpower in 2016.

As part of the Transaction, Infratil has entered into a binding Voting Deed with PowAR under which Infratil has committed to vote all the Tilt shares that it controls, representing 65.5% of Tilt shares on issue, in favor of the Scheme.

Infratil is being advised by Goldman Sachs as financial advisers and Buddle Findlay and Allens as legal advisers.