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UPDATE 1-NZ's Tilt Renewables to sell Snowtown 2 wind farm

Published 05/12/2019, 08:46 am
Updated 05/12/2019, 08:49 am
UPDATE 1-NZ's Tilt Renewables to sell Snowtown 2 wind farm
TIL1
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IFT
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(Adds outlook, details on sale)

By Sameer Manekar

Dec 5 (Reuters) - New Zealand's Tilt Renewables TLT.NZ said on Thursday it will sell its Snowtown 2 wind farm in South Australia to a venture owned by funds managed by Palisade Investment Partners Ltd and First State Super for A$472 million ($320 million).

The Melbourne-based electricity generator said the sale, which has been sparked by a strategic review, is likely to generate net proceeds of about A$455 million for the company.

As a result of the divestment, Tilt cut its full year core earnings outlook to between A$118 million and A$122 million, from its earlier forecast of between A$127 million to A$132 million.

The 270 megawatt wind farm contributed about A$68 million of EBITDAF per annum to the group in an average wind year, the firm said in a statement.

Tilt, which is majority owned by utilities investor Infratil Ltd IFT.NZ , said the wind farm is being sold with Snowtown 2's existing project finance facility, which has an expected balance of about A$611 million at transaction closing, expected before the end of 2019. ($1 = 1.4736 Australian dollars)

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