Independent directors of Tilt Renewables Ltd (NZX & ASX: TLT) yesterday rejected the $2.30 offer from its two majority shareholders as being “Inadequate and not fair.”
These directors advised shareholders to not accept the takeover offer by major shareholders Infratil Ltd (NZX: IFT) and Mercury NZ Ltd (NZX & ASX: MCY).
“The offer price does not adequately recognise the value of the current operational assets and the strong pipeline of future projects,” said chairwoman of the independent directors committee, Fiona Oliver.
Mercury NZ and Infratil formed a joint venture to bid for the 29% of the company they do not already own.
Tilt Renewables was spun out of Trustpower Ltd (NZX: TPW) about two years ago, has wind farms in Australia and New Zealand and, according the company’s recent annual report, has arguably the best pipeline of renewable energy projects of any company in the two countries.
This includes the 336 MW Dundonnell wind farm for which the company has submitted a bid to sell a portion of the output to the Victorian State Government.
Fiona Oliver said the offer is inadequate and not fair to Tilt Renewables’ nearly 11,000 minority shareholders.
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