Infratil confirms support for Contact Energy's acquisition of Manawa Energy

Infratil Limited (ASX:IFT) has confirmed its support for Contact Energy's proposed acquisition of Manawa Energy. Infratil, which owns 51% of Manawa Energy, will back Contact Energy's acquisition of Manawa pursuant to a Scheme Implementation Agreement, subject to certain conditions. Manawa Energy has entered into a Scheme Implementation Agreement with Contact Energy, under which Contact will acquire all of Manawa's shares through a scheme of arrangement. Manawa shareholders will receive cash consideration of $1.16 per share and 0.5719 Contact shares for every Manawa share they hold prior to the implementation of the Scheme. Infratil CEO Jason Boyes has entered into a binding Voting Agreement with Contact, committing to vote its 51% stake in Manawa shares in favor of the Scheme, subject to certain conditions.

Infratil CEO Jason Boyes on the proposed transaction

Infratil CEO Jason Boyes stated, 'The total offer price of $5.95 represents around a 48% premium to the Manawa share price prior to the announcement. If the Scheme proceeds as announced, and subject to any pre-completion dividends, Infratil's gross cash proceeds from the sale will be approximately NZ$186 million, and following completion, we will own approximately 9.5% of Contact. This transaction represents a significant step in enhancing the combined capabilities of both Manawa and Contact. By integrating Manawa's hydro assets with Contact's diversified energy portfolio, the merged entity will create a more resilient and flexible generation platform. With balance sheet and scale efficiencies, the combined entity will retain capital optionality and will be well-positioned to advance both companies' development pipelines to further support the decarbonisation of the New Zealand electricity sector.'

Outlook for the proposed acquisition

The proposed acquisition of Manawa by Contact Energy, with the support of Infratil, is expected to enhance the combined capabilities of both companies. The integration of Manawa's hydro assets with Contact's diversified energy portfolio is anticipated to create a more resilient and flexible generation platform. The merged entity aims to retain capital optionality and advance development pipelines to further support the decarbonisation of the New Zealand electricity sector. Infratil's gross cash proceeds from the sale are estimated to be approximately NZ$186 million, and following completion, Infratil will own approximately 9.5% of Contact. The Scheme is currently expected to take approximately 6 - 9 months to be implemented, subject to a number of conditions and termination events. Infratil is being advised by Macquarie Capital as financial adviser and Chapman Tripp as legal adviser.