Tough going for Tilt bidders as investors pooh-pooh offer
Mining & Resources
The bidders want shareholders to jump into bed with them, but shareholders don't like the smell of this deal. Pic: Getty
The two bidders for wind farm builder Tilt Renewables have struggled to convince investors to sell up.
Infratil and Mercury NZ — both Kiwi power operators — made the $2.30 cash bid in August.
Tilt’s (ASX:TLT) board shot it down as being inadequate — despite being a 31 per cent premium to the pre-bid share price.
But it’s been tough going.
The bidders already owned 77.8 per cent of Tilt and have only managed to convince a handful of shareholders that it’s worthwhile selling.
On Tuesday the bidders said they had 79.31 per cent.
An independent advisor valued Tilt at $2.56 to $3.01 a share.
Fiona Oliver, chair of Tilt’s Independent Directors Committee, has consistently said the Victoria government-backed Dundonnell wind farm as well as a pipeline of other projects meant the company’s potential was worth more than $2.30 a share.
Tilt is also a Kiwi company and dual listed on both exchanges. In New Zealand it was trading at $NZ2.31, while in Australia the stock has fallen back to $2.01.