Independent directors have sent out another letter to shareholders to help shore the defence against the joint takeover bid by the company’s two major shareholders.
The latest letter repeats the request that shareholders reject the $2.30 per share offer from Infratil Ltd (NZX & ASX: IFT) and Mercury NZ Ltd (NZX & ASX: MCY).
Chairwoman of the independent directors, Fiona Oliver, repeated that the offer “is inadequate and does not reflect the underlying value of Tilt Renewables.”
Oliver said the current level of acceptances (about 6% excluding TECT) does reflect merits of the offer. She reminded shareholders that the independent adviser’s report by Northington Partners valued Tilt at between $2.56 and $3.01 with a midpoint of $2.79.
This week Tilt announced “two more positive pieces of news:
- The board approved the Dundonnell wind farm proceed to financial close with another 15-year offtake agreement for a further 50% of the Dundonnell capacity adding to the 37% already agreed with the Victorian State Government.
- Tilt Renewables’s first half result for FY19 financial year showed wind production was 23% higher than the same period last year and EBITDAF was up 36%.
“All these positive announcements have occurred since the offer was made. Yet there has been no increase in the offer price or an acknowledgement by the JV of these events,” she added.