Tuesday 15th May 2018
|Text too small?|
Infratil, the investment company that owns 50.8 percent of Tilt Renewables, says it wouldn't approve new shareholder Mercury NZ increasing its current 19.99 percent holding, having made its own offer for the stock.
Yesterday Mercury said it agreed to buy 19.99 percent of Tilt, the wind and solar generation company split from Infratil-controlled Trustpower in 2016, from the Tauranga Electricity Consumer Trust (Tect) for $144 million, or $2.30 a share, a 24 percent premium to its last trading price. Auckland-based Mercury said it had a six-month option to buy the trust's remaining 6.8 percent holding in Tilt at the same price but under New Zealand's Takeovers Code any move above 20 percent would likely require it to make an offer for the whole company.
In a separate statement today, Wellington-based Infratil said it had tabled its own proposal to acquire Tect's 26.7 percent holding as part of Tect's sale process and as part of that process had "clarified that it was unlikely to provide approval (as the majority shareholder in Tilt) for any other acquirer to move beyond a 19.99 percent ownership interest or offer any additional governance rights."
"While we welcome interest in any of our portfolio businesses, Infratil and Mercury currently have no agreement, arrangement or understanding in relation to Tilt," Infratil investor relations manager Mark Flesher said in the statement.
Mercury agreed to acquire the initial fifth of Tilt and take an option on the remaining 6.8 percent earlier this month.
Tilt's shares rose 1 percent to $2.02, having jumped 9 percent yesterday. Mercury fell 1.4 percent to $3.11 and Infratil rose 0.9 percent to $3.24.
No comments yet
MARKET CLOSE: NZ shares gain; a2 hits new record, F&P climbs on patent deal
NZ dollar eases against Aussie on strong jobs data
KiwiSaver funds face unrealised capital gains tax on NZ and Aussie shares
Planning changes need to speed renewables development - Meridian
A guide to the Tax Working Group's 'other' recommendations
MYOB adds 57% more subscribers in 2018 but total online customers still lag Xero's
Investors fear chilling effect as former IRD boss opposes capital gains proposals
Stuff 1H earnings slide but Nine still optimistic of finding buyer
NZ Post achieves first-half revenue growth for the first time since 2015
TeamTalk affirms annual earnings guidance as rising costs dent first-half profit