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PowAR acquires Tilt for $3bn
Powering Australian Renewables has successfully acquired Tilt Renewables in partnership with Mercury NZ Limited, with assistance from two BigLaw firms.
Naomi Neilson
Firm: Ashurst (Tilt Renewables); Herbert Smith Freehills (Powering Australian Renewables)
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Deal: Tilt Renewables has been acquired for NZ$3.07 billion by Powering Australian Renewables (PowAR) consortium, comprising of Queensland Investment Corporation, Future Fund and AGL Energy, in partnership with Mercury NZ. The companies were assisted by Ashurst and Herbert Smith Freehills (HSF) respectively.
Value: NZ$3.07 billion.
Area: M&A.
Key players: At Ashurst, the team was led by partners John Brewster and Lynda Tully, who was assisted by lawyer Nik Lukic.
HSF’s team was led by partner Gerard Pike with support from partner Alison Dodd, senior associate Nadine Kilpatrick and solicitors Beryl Yan and Sean Carr.
Deal significance: Tilt’s Australian business includes the 336-megawatt Dundonnell Wind Farm, 101-megawatt Snowtown 1 Wind Farm and 54-megawatt Salt Creek Wind Farm, as well as numerous other assets in development. The acquisition of Tilt reinforces PowAR’s position as the largest owner and operator of wind and solar generation in Australia.
The process followed a competitive sale process during which Tilt received multiple binding proposals to acquire the company. PowAR has taken possession of Tilt’s Australian subsidiaries and Mercury NZ has acquired Tilt’s business in New Zealand.
It is the largest-ever renewable transaction across Australia and New Zealand and will drive the growth of Tilt’s renewable energy platform while allowing PowAR and Mercury to accelerate growth in the Australian and New Zealand markets.
Commenting on the transaction, Mr Brewster said: “Ashurst is pleased to advise Tilt on this NZ$3.07 billion transaction and assist Tilt through all aspects of this complex competitive sale process that spanned across Australia and New Zealand.”
HSF partner Mr Pike said: “We are really pleased to have advised the financiers to PowAR on such a landmark acquisition in the renewables sector.
“The amount of work invested by PowAR and the lead mandated lead arranger, underwriter and bookrunner banks… to complete this acquisition and financing has been incredible. This new financing package will be a great platform for the ongoing success of PowAR in the next chapter of its evolution with Tilt.”
