Meridian Energy sells Australia unit for $528 mln to Shell-consortium – EQ Mag Pro
Meridian Energy on Monday said it agreed to sell its Australian energy business for A$729 million ($527.80 million) to a consortium of global energy giant Royal Dutch Shell and Australian investment manager Infrastructure Capital Group (ICG).
The agreement comes months after the Wellington, New Zealand-based power company kicked off a review https://www.reuters.com/business/energy/nzs-meridian-energy-review-ownership-australian-energy-business-2021-06-07 of Meridian Energy Australia, which has about 294 megawatts of renewable generation capacity along with a retail power and gas business.
Under the deal, Shell will get the control of the unit’s retail business, Powershop Australia, while ICG will become the owner of the electricity generator’s hydro power and wind farm infrastructure assets in Australia.
“With emissions the problem, and renewable energy the solution, the buyers are readying to invest heavily in a cleaner future,” Meridian Chief Executive Neal Barclay said in a statement .
Meridian will continue to consider capital structure, dividend policy and future opportunities for re-investment of the proceeds as settlement of the transaction approaches, the statement added.
The deal, which is expected to be completed by the first quarter next year, is subject to conditions including Shell getting foreign investment approval from the Australian Government.
Shell and ICG did not immediately respond to a Reuters request for comment.
Source : reuters
