Independent valuation of Tilt 'very optimistic' - Infratil
By Gavin Evans
Sept. 18 (BusinessDesk) - Some of the assumptions in an independent valuation of Tilt Renewables have resulted in a “very optimistic” view of the firm’s long-term prospects, suitor Infratil says.
Chief executive Marko Bogoievski said some of the assumptions are significantly more favourable than market comparatives. There are also material differences in both the expected rates of return on contracted and uncontracted cash flows, as well as the valuation of Tilt’s proposed 336 MW Dundonnell wind farm in Victoria.
“Infratil will take the opportunity to fully review the target company statement and expects to respond comprehensively to the statement within the next week.”
Shares in Melbourne-based Tilt jumped 4.8 percent to $2.41 yesterday after Northington Partners valued its shares at $2.56 to $3.01. They closed at $2.33 today.
Infratil and Mercury NZ have offered $2.30 a share for the 22 percent of the company they do not already own. Northington believes that price ascribes no value to Dundonnell, nor Tilt’s pipeline of solar and wind developments.