Frontier Energy to acquire Waroona Energy, creating a renewable energy giant

SYDNEY, AUSTRALIA: Frontier Energy Limited (ASX: FHE; OTCQB: FRHYF), a leading Australian renewable energy company, has announced that it has signed a binding agreement to acquire Waroona Energy Inc. (TSXV: WHE), a Canadian-based solar developer with projects in Western Australia.

The deal will create one of Australia’s largest renewable energy companies, with potential for renewable energy generation in excess of 1GW.

The transaction, which is expected to be completed by December 2023, will see Frontier acquire all the Waroona shares not currently held by Frontier (Frontier already owns 20% of Waroona) via a Canadian Plan of Arrangement, equivalent to an Australian Scheme of Arrangement. Under the terms of the deal, Waroona shareholders will receive 1 new Frontier share for every 4.27 Waroona shares held on the record date. Upon completion, Frontier shareholders will hold approximately 69% of the merged group and Waroona shareholders will hold approximately 31%.

The merger will significantly increase Frontier’s project scale and development pipeline, as well as strengthen its balance sheet and simplify its financing and stakeholder communication. Frontier will hold development approvals for total solar generation capacity of 355MW, with 120MWdc shovel ready, at its renewable energy project site in South West WA. The combined solar capacity of Frontier and Waroona will provide a potential of 355MW of renewable solar power generation, with development approvals in place. Waroona has also engaged Incite Energy to conduct a DFS for a 120MWdc solar development, to be delivered early 2024.

Frontier’s freehold land footprint will increase by more than 50% to 868 hectares, enabling future renewable energy generation to over 1GW. The merged group will have cash of $22 million and a simplified capital structure.

Frontier Managing Director, Sam Lee Mohan, commented: “Frontier shareholders are a step closer to realising significant value from this transaction, with the terms of the Letter of Intent now documented in a binding agreement, with the implementation date remaining December 2023. This transaction will create one of Australia’s largest renewable energy companies, with a clear path to delivering low-cost, clean energy to the grid and our customers.”

The transaction has been unanimously recommended by Waroona’s Board of Directors and is subject to customary conditions, including court approval, regulatory approvals and shareholder approvals.

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