By Jenny Ruth
Nov. 14 (BusinessDesk) - Infratil has extended its takeover offer for Tilt Renewables until the end of the month in a final attempt to garner the 90 percent stake it needs to compulsorily acquire the remaining shares.
The $2.30 per share offer had been due to expire today and Infratil says it has now reached 84.4 percent acceptances.
Tilt chief executive Deion Campbell has already said that Infratil’s takeover offer has delayed the planned A$280 million rights issue needed to help finance the company's A$560 million Dundonnell wind farm.
Tilt's independent directors have vociferously rejected Infratil’s bid for undervaluing the company and have criticised Infratil’s arguments for containing “errors and omissions” and for using facts selectively.
Infratil and Mercury NZ formed a joint venture in mid-August, after Mercury bought 20 percent of Tilt from the Tauranga Energy Consumer Trust. The venture structure enabled a takeover offer in which Infratil was able to buy TECT’s remaining 6.8 percent stake.
Infratil says the latest extension of the offer is investors’ last chance to accept or risk being locked in as minority shareholders because the bid cannot be extended beyond Nov. 30.
It says it continues to believe the $2.30 offer price is attractive and more than fair "especially in light of recent global share market volatility and the 5.2 percent decline in the New Zealand Stock Exchange’s benchmark index since the beginning of October.”
Tilt shares last traded at $2.30.