(Adds comment from Shell paras 5,6)
Nov 22 (Reuters) - Meridian Energy on Monday said
it agreed to sell its Australian energy business for A$729
million ($527.80 million) to a consortium of global energy giant
Royal Dutch Shell and Australian investment manager
Infrastructure Capital Group (ICG).
The agreement comes months after the Wellington, New
Zealand-based power company kicked off a review https://www.reuters.com/business/energy/nzs-meridian-energy-review-ownership-australian-energy-business-2021-06-07
of Meridian Energy Australia, which has about 294 megawatts of
renewable generation capacity along with a retail power and gas
business.
"With emissions the problem, and renewable energy the
solution, the buyers are readying to invest heavily in a cleaner
future," Meridian Chief Executive Neal Barclay said in a
statement https://www.nzx.com/announcements/383219.
Under the deal, the energy giant's unit Shell Energy
Operations will get the control of Meridian's online energy
retailer Powershop Australia, while ICG will become the owner of
the electricity generator's hydro power and wind farm
infrastructure assets in Australia.
Shell, which aims to drop https://www.reuters.com/world/uk/shell-proposes-single-share-structure-tax-residence-uk-2021-11-15/#:~:text=LONDON%2C%20Nov%2015%20(Reuters),shifts%20from%20oil%20and%20gas
"Royal Dutch" from its name and scrap its dual share structure
to move its head office to Britain, said the deal will extend
its position as Australia's largest dedicated electricity
retailer to commercial and industrial clients.
"Our aim is to become a leading provider of clean
power-as-a-service and this acquisition broadens our customer
portfolio in Australia to include households," Shell's Executive
Vice President of Renewables and Energy Solutions Elisabeth
Brinton said separately.
Meridian in its statement added that it will continue to
consider capital structure, dividend policy and future
opportunities for re-investment of the proceeds as settlement of
the transaction approaches.
The deal is expected to be completed by the first quarter
next year, and is subject to conditions including Shell getting
foreign investment approval from the Australian Government.
ICG did not immediately respond to a Reuters request for
comment.
($1 = 1.3812 Australian dollars)
(Reporting by Sameer Manekar in Bengaluru, Editing by William
Maclean)
