Infrastructure Capital Group (ICG), a leading Australian infrastructure manager, with A$3.5bn of equity under management has today reached financial close on its acquisition of the Meridian Energy Australia Group (MEA), the Australian operations of Meridian Energy Limited.

 

ICG has acquired MEA in collaboration with Shell Energy Operations Pty Ltd, a wholly owned subsidiary of Shell (together the Consortium).

 

MEA was acquired by the Consortium for a total consideration of A$740 million.

 

With the transaction having now completed, the Consortium will now work together to separate MEA, with ICG taking ownership of the wind, hydro and development assets; and Shell taking ownership of Powershop, MEA’s energy retail business.

 

ICG has acquired MEA’s generation assets through its Australian Renewables Income Fund (ARIF). The MEA assets deliver ICG a mix of operating and development wind, hydro and BESS assets, which are highly complementary to the other assets in the ARIF portfolio.

 

As part of the separation, Shell will acquire all output from the wind and hydro assets under several PPAs.

 

The transaction also brings a quality team of renewables experts with capabilities across asset management, operations, development, engineering, finance and legal. This capability supports ARIF’s investors’ mandate to strongly grow ARIF’s portfolio and create new opportunities in the sector.

 

Commenting on the completion of ICG’s acquisition of Meridian Energy Australia Group, Tom Laidlaw, Managing Director of ICG, said:

“We are delighted to acquire this high-quality portfolio of renewables assets and especially to welcome Meridian Energy’s experienced team to the ICG group.

 

“We are grateful to the Meridian team for their commitment over the last few months as they have worked tirelessly to prepare the assets for change of ownership, in addition to their ongoing day-to-day management of the business. The ICG, Meridian and Shell teams will now work closely in the final transition and separation phase.”

 

With the completion of the transaction, ICG is now invested in operating renewable energy generation assets with a total capacity of 1,166MWAC across wind, hydro and solar assets and expands ARIF’s extensive development pipeline of opportunities to over 2,750MWAC of wind, hydro, solar and storage opportunities.

 

The operational assets being acquired by ICG are:

  • Mount Millar Wind Farm, South Australia – 70 MW
  • Mount Mercer Windfarm, Victoria – 131 MW
  • Hume Hydro Power Station, Victoria/NSW border – 58 MW
  • Burrinjuck Hydro Power Station, NSW – 34 MW
  • Keepit Hydro Power Station, NSW – 7 MW

 

The development assets being acquired by ICG, include:

  • Rangoon Wind Farm, near Glen Innis, NSW – 108 MW
  • Hume BESS, Victoria/NSW border – 20 MW / 40 MWh

 

ARIF’s existing assets are:

  • Hallett 4 Wind Farm, South Australia – 351MW
  • Mumbida Wind Farm, Western Australia – 55MW
  • Bald Hills Wind Farm, Victoria – 107MW
  • Willogoleche Wind Farm, South Australia – 119MW
  • 75% interest in the Australian Renewables Energy Trust (ARET) platform with ENGIE ANZ to develop a pipeline of over 2,300MW of renewable projects
  • Ginan Solar Portfolio, Victoria & New South Wales – 73MW operating and 115MW in development

 

ICG was advised by Azure Capital and Baker & McKenzie.   Project Financing was provided by CBA and Westpac.

 

 

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