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Meridian agrees to sell its Australian business to Shell for $752m


Meridian is New Zealand's largest renewable energy generator.

KIRK HARGREAVES/Stuff

Meridian is New Zealand’s largest renewable energy generator.

Meridian has agreed to sell its Australian business to a consortium of Shell Energy for A$729 million (NZ$752m).

Shell Energy is a wholly owned subsidiary of Shell and Infrastructure Capital Group.

Shell will become the owner of retail business Powershop Australia while ICG will become the owner of the infrastructure assets including Mt Mercer and Mt Millar wind farms, Hume, Burrinjuck and Keepit hydropower stations and development assets.

The sale is subject to conditions including Shell receiving foreign investment approval from the Australian Government. The deal is expected to be completed in the first quarter of 2022.

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Meridian Energy chief executive Neal Barclay says the transaction is an outstanding result for Meridian’s shareholders.

It was a testament to the quality of the Meridian Energy Australia business and its staff.

Meridian Energy chief executive Neal Barclay says the transaction is an outstanding result for Meridian’s shareholders.

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Meridian Energy chief executive Neal Barclay says the transaction is an outstanding result for Meridian’s shareholders.

Shell and ICG had intentions to grow their renewable energy and retail presences in Australia, he said.

“With emissions the problem, and renewable energy the solution, the buyers are readying to invest heavily in a cleaner future,” Barclay said.

Agreements had been put in place with Flux Federation, a Meridian subsidiary, for Powershop Australia’s retail software services and Meridian Energy Australia’s call centre based in Masterton, he said.

The agreements will be in place for minimum of three years, he said.

A transitional services arrangement had been agreed, which would allow for a transition of services currently provided by Meridian Energy Limited to Meridian Energy Australia for a period of up to one year, he said.

Meridian would continue to consider capital structure, dividend policy and future opportunities for re-investment of the proceeds as it nears settlement.

An update would be provided at the company’s interim results presentation on February 23.



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