By Gavin Evans
June 26 (BusinessDesk) - Tilt Renewables is considering selling its 270 MW Snowtown 2 wind farm in South Australia.
The project, completed in 2014 alongside its original 101 MW Snowtown development, is Tilt’s largest operating asset and one of the largest wind farms in Australia. Its power and renewable energy certificates are contracted out to 2035.
Tilt says the firm’s high-quality development pipeline offers potential for near-term investment in a strong revenue contracting environment. Given that, it needs to be sure its balance sheet is working efficiently so that shareholder capital is available for the firm’s highest-value opportunities.
“This is an appropriate time to consider strategic options from the existing asset base, including changes in ownership. At this stage, no decisions have been made and there is no certainty that the review of Snowtown 2 will lead to any transaction,” the Melbourne-based firm said in a statement to NZX.
Tilt, controlled by major shareholders Infratil and Mercury NZ, last year completed the 54 MW Salt Creek wind farm in Victoria. Earlier this year it raised A$260 million of new equity to fund the A$560 million, 336 MW Dundonnell project it is building in western Victoria. It is also planning a 130 MW development at Waverley on the southern Taranaki coast with Genesis Energy.
Tilt has hired Lazard to conduct the review and is taking debt advice from Mitsubishi UFJ Financial Group.
The firm's shares rose 2.1 percent to $2.42 in early trading