After posting a $A2.8 million ($NZ3.04 M) loss for financial year 2018, a 19.99% stake of Tilt Renewables Ltd (NZX & ASX: TLT) has been sold to Mercury NZ Ltd (NZX: MCY; ASX: MEZ).
Tilt Renewables’ FY18 loss compared poorly to a $A16.4 M profit the year before.
The website ITbrief said the Auckland-based wind and solar company Tilt cited below average wind conditions in both New Zealand and Australia, in addition to the impact of constraints put in place by the market operator (AEMO) in Australia, as the main drivers of the loss.
Low wind conditions across Australia and New Zealand were largely experienced in the June 2017 quarter, with the impact partially offset by improved Australian production in the last three quarters of FY18.”
Tilt remains optimistic about the future of the renewable energy market in Australia and NZ, claiming that renewable energy has cemented its position as the lowest costs option for replacing Australia’s ageing fleet of thermal generation. (soaring power costs in South Australia and Victoria where coal use has either been eliminated or reduced while renewable developments have been heavily subsidised, belies that point: Editor).
ITBrief said Mercury NZ has reached an agreement with the Tauranga Electricity Consumer Trust (TECT) to pick up a 19.99% stake in Tilt Renewables, agreeing to a total purchase price of $143,895,594.60 - or $2.30 per share.
Mercury has also secured an option to acquire the remaining roughly 6.81% of Tilt shares held by TECT at $2.30 per share, payable in cash. TECT was interested in shedding its dividend right in Tilt’s parent Trustpower Ltd (NZX & ASX: TPW).
The deal comes soon after Tilt Renewables appointed a new chief executive, Deion Campbell, who took up the role in late January, following the resignation of Robert Farron.
Companies mentioned in article