Wind Energy Opportunity Expands in New Zealand
The renewable energy sector in New Zealand is poised for significant growth, with Meridian Energy Limited (ASX/NZX:MEL) announcing its intention to acquire full ownership of NZ Windfarms Limited (NZX:NZWF). The acquisition will provide Meridian with complete control over NZ Windfarms’ assets, including the pivotal Te Rere Hau Wind Farm in Manawatū.
Under a Scheme Implementation Agreement (SIA), Meridian will purchase all outstanding shares in NZ Windfarms for NZ$0.25 per share, valuing the company at approximately NZ$91 million. The transaction is contingent on shareholder and NZ High Court approval.
Meridian CEO Highlights Strategic Fit
Meridian’s Chief Executive, Neal Barclay, emphasised that the acquisition aligns with the company’s broader renewable energy strategy.
“Meridian is already the largest shareholder in NZWF and is also party to a 50-50 joint venture to repower NZ Windfarms’ largest asset, the Te Rere Hau Wind Farm in Manawatū,” Barclay said. “If the scheme of arrangement is successful, it will reward NZWF shareholders for the value created to date, while also enabling more efficient financing of the Te Rere Hau repowering project.”
Te Rere Hau Repowering Set to Boost Capacity
The Te Rere Hau Wind Farm repowering project is central to the deal, with plans to upgrade the site by replacing aging turbines with up to 39 modern units. These new turbines will have a combined generation capacity of up to 170 megawatts (MW), significantly expanding renewable energy production in the region.
“The Te Rere Hau repowering involves the design, construction, and operation of up to 39 new turbines with generation capacity of up to 170MW,” Barclay explained. “It will be New Zealand’s first wind farm repowering project and has the potential to generate seven times the annual renewable energy production of the current turbines.”
The project is expected to provide economic benefits by creating regional jobs and business opportunities while strengthening New Zealand’s energy security.
Support from Key Shareholders
NZ Windfarms’ Board has unanimously recommended that shareholders vote in favour of the scheme, provided the Independent Adviser’s report deems the offer fair. Major shareholders Robert Stone and Salt Funds Management, who collectively hold 14 per cent of NZWF, have also committed to voting for the deal.
Meridian’s Track Record in Renewable Growth
Meridian has experience in delivering large-scale wind projects, including the recently completed Harapaki Wind Farm in Hawke’s Bay. According to Barclay, the Harapaki project serves as a model for what can be achieved at Te Rere Hau.
“Our new Harapaki Wind Farm in Hawke’s Bay has shown the benefit of maximising generation through modern turbines on a world-class site,” Barclay said. “That’s what we’ve got the opportunity to do at Te Rere Hau.”
Next Steps for the Acquisition
The proposed acquisition now moves to the approval stage. Shareholders will vote on the scheme following an independent assessment of the offer, with final clearance required from the NZ High Court.
Meridian is being advised by Russell McVeagh and Clare Capital on the transaction.
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Shraddha13
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