7 Dec 2020

Infratil considers selling windfarm firm stakes after interest

11:35 am on 7 December 2020

The utilities and infrastructure investor Infratil is considering selling its stake in the windfarm company Tilt Renewables after strong interest from potential buyers.

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Photo: 123RF

Infratil owns about two-thirds of Tilt, which is listed on the New Zealand and Australian stock exchanges.

Infratil chief executive Marko Bogoievski said it had recently received a number of enquiries in relation to its shareholding and given the strong demand for high quality renewables it would assess its options.

"We continue to be highly supportive of Tilt and its management team, however, the strong interest in Tilt has tipped the balance in favour of initiating the strategic review today."

"Infratil considers it is prudent to assess alternatives for its Tilt shareholding, including divestment of its position.

"Any decision to pursue a particular proposal would need to demonstrate a material increase in expected returns and shareholder value relative to the current positive outlook."

Tilt more than doubled its profit for the six months to September and although that was mostly through accounting provisions the company was confident its pipeline of work, including the site at Waipipi in Taranaki and the sector in general was robust.

The energy company Mercury owns almost 20 percent of Tilt and said while its aware Infratil's review could result in an offer for all shares, there was no such arrangement in place.

"Mercury is very satisfied with the performance to-date of its investment in Tilt and has not reached a position on the future of that investment.

"The directors of Mercury will monitor developments closely."

Goldman Sachs has been engaged to assist in undertaking the strategic review, which would be completed mid-2021.

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