Green tech Tilt’s biggest shareholder says rival Mercury can’t buy more than 19.9pc
New Zealand energy provider Mercury NZ is looking to buy up to 26.8 per cent of green energy company Tilt Renewables for $NZ144 million ($133 million).
Its first buy-in will give it 19.9 per cent of the technology company — and if Tilt’s (ASX:TLT) major shareholder a say that is where it will stay.
Mercury (ASX:MCY) is buying 62.6 million shares held by Tauranga Electricity Consumer Trust, with an option to buy the remaining 21.3 million later for $NZ49 million.
But 51 per cent Tilt shareholder Infratil says it’s “unlikely to provide approval” for any other shareholder to move above the 19.9 per cent threshold.
“While we welcome any interest in our portfolio businesses, Infratil and Mercury currently have no agreement, arrangement or understanding in relation to Tilt,” Infratil told the ASX.
Tilt was spun out of another Kiwi energy company Trust Power in 2016 with technology that tilts windmills and solar panels towards the source of generation.
Last week it posted a 117 per cent drop from profit to loss which it largely blamed on winds refusing to blow in New Zealand and Australia.
The Mercury deal values Tilt at $NZ2.30 a share.
The company was trading up 11 per cent on Monday morning at $NZ2.05 on the NZX. In Australia it was flat at $1.75.