One of the key parties in the full takeover bid for Tilt Renewables Ltd (NZX & ASX: TLT), Infratil Ltd (NZX: IFT) says that the offer price it and Mercury NZ Ltd (NZX & ASX: MCY) made for shares in the company they do not own was both fair and reasonable.
Infratil’s announcement was a counter to the report put out by independent directors of Tilt that the offer was not fair and should be rejected.
The offer price by the joint bidding companies was $2.30 per share. NZResources reported earlier that the intent of the two major shareholders was to privatise Tilt.
Infratil said of the offer:
• The $NZ2.30/share offer represents a 24.3% premium to the closing share price of Tilt Renewables before any indication of potential takeover related activity, recognising the value of Tilt's pipeline of opportunities including the Dundonnell wind farm.
• The price is higher than all of the broker analyst 12-month price targets and 6.8% higher than the average broker analyst 12-month price target prior to the offer announcement.
• The offer price is higher than the maximum closing price of Tilt Renewables over the 18 months prior to the announcement of the offer.
• The Tauranga Energy Consumer Trust, the third largest shareholder in Tilt, recently sold a 19.99% holding in for NZ$2.30 and granted an option over the remainder of its stake at the same price.
• There is significantly increased political and regulatory uncertainty in the Australian renewable energy sector at this time, affecting Tilt's outlook and value and the broader prospects for the renewable energy industry.
• The value of Tilt Renewables’ development options is highly dependent on a number of factors, including: long-term electricity prices, trends in underlying generation and storage technologies, retirement of existing thermal generation assets, Federal and State renewable settings, and the quality and quantity of competing generation sites and development capital.
In a following announcement yesterday, Infratil said all conditions for the full cash takeover by the two companies have been waived and the offer was now “fully unconditional.”
Infratil said Mercury NZ will now exercise the option it holds to acquire TECT Holdings remaining 6.81% shareholding in Tilt Renewables.
This will bring the level of acceptances to 77.881%.
“Now the Offer is unconditional, Tilt Renewables shareholders that accept the Offer will be sent NZ$2.30 cash per share within seven days of receipt of their acceptance.”