An AGL and Future Fund-backed consortium late Friday has sweetened its friendly bid for New Zealand’s Tilt Renewables valuing the New Zealand Energy company at $NZ3.07bn ($2.8bn).
The move – which all but secures the sale of the energy play – comes on the heels of Canadian pension fund CDPQ approaching the board of Tilt Renewables with an offer of $NZ8 per share, valuing the business at close to $NZ3 billion.
The Powering Australian Renewables consortium which is made up of the Future Fund, AGL Energy, Queensland Investment Corporation and Mercury Energy have increased the offer under the scheme of arrangement for Tilt from NZ$7.80 per share to NZ$8.10 per share.
Mercury already owns 19.92 per cent of Tilt and late Friday said it would vote its shares in favour of the Powering Australia Renewables scheme.
The consortium last month won a contest to buy the listed business for $NZ7.80 per share, equating to $NZ2.96bn.
Tilt is listed in Australia and New Zealand and owns solar and wind farms in both countries.
It entered a trading halt on Thursday to determine whether it could secure for shareholders a superior scheme of arrangement.
As part of the sweetener Tilt has agreed to a “no shop, no talk clause” which prevents Tilt from progressing “any competing proposal that may be presented”.
“Tilt Renewables agreed to this in return for the increase in the scheme consideration and, having regard to the comprehensive process that has been run to date, Tilt Renewables is satisfied that the amended scheme is the most attractive option for shareholders coming out of that process,” the New Zealand company said.
CDPQ was the underbidder in a contest run by Lazard earlier this year for Tilt.
Others were the APA Group and Engie, with ICG.
At that time, DataRoom understands that at least two other parties put forward an offer that valued the listed group at more than $NZ7 per share, with an underbidder in the final stages of the contest said to be close in price to the winning $NZ7.80 per share offer.
Market sources say CDPQ has been in discussions with Tilt this week with respect to an approach that is believed to be worth $NZ8 per share.
Its plan was to take the New Zealand assets at an enterprise value of $NZ770m, with the other QIC and AGL consortium members, to own the remainder.
The Goldman Sachs-advised Infratil owns a 65.6 per cent interest in Tilt. Infratil on Friday said it also support the sweetened scheme.
Infratil placed the interest on the market in a defensive move after it rejected a $5.1bn takeover bid from AustralianSuper.
But suitors had been invited by Tilt Renewables’ adviser Lazard to bid for the entire company at a time that such assets owned by the company remain in strong demand.
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