WELLINGTON: Meridian Energy has entered into an agreement to acquire NZ Windfarms Limited (NZWF) for $0.25 per share, valuing the equity of NZ Windfarms at approximately $91 million. The deal, announced on Feb. 19, 2025, is subject to approval from NZ Windfarms shareholders and the High Court.
Under the terms of the Scheme Implementation Agreement (SIA), Meridian will acquire all shares in NZ Windfarms through a court-approved Scheme of Arrangement.
The two companies are already partners in a 50-50 joint venture to repower NZ Windfarms’ largest asset, the Te Rere Hau Wind Farm in Manawatū. Meridian currently holds a 19.99% stake in NZ Windfarms.
The NZ Windfarms Board has unanimously recommended that shareholders vote in favor of the scheme, provided that an independent adviser’s report confirms that the offer is within or above the valuation range for NZ Windfarms shares. Robert Stone and Salt Funds Management, who together own about 14% of NZ Windfarms, support the transaction and have agreed to vote in favor of the deal.
Meridian Energy CEO Neal Barclay said the acquisition would reward NZ Windfarms shareholders for the value created to date and enable more efficient financing of the Te Rere Hau repowering project.
The project involves the design, construction, and operation of up to 39 new turbines with a generation capacity of up to 170 megawatts. It is expected to be New Zealand‘s first wind farm repowering project and could generate seven times the annual renewable energy production of the current turbines.
Barclay highlighted the success of Meridian’s Harapaki wind farm in Hawke’s Bay, which has demonstrated the benefits of modern turbines on a world-class site. He said the Te Rere Hau project would create regional jobs, strengthen energy security, and generate value for shareholders of both companies.
Meridian Energy is being advised by Russell McVeagh and Clare Capital on the transaction.