TRH Repower Commercial Terms, MEL Placement, & Rights Issue

25 October 2023

NZX Limited
Level 1, NZX Centre
11 Cable Street
Wellington

NZX Announcement

For immediate release

NZ WINDFARMS LIMITED: MARKET UPDATE: TE RERE HAU WIND FARM REPOWER COMMERCIAL TERMS – MERIDIAN PARTNERSHIP, MERIDIAN PLACEMENT AND SHAREHOLDER RIGHTS ISSUE

NZ Windfarms Ltd: (NZX Code: NWF) is very pleased to announce that it has reached agreement with Meridian Energy Ltd (NZX code: MEL) (Meridian, New Zealand’s largest electricity generator) to pursue the development and repower of Te Rere Hau wind farm, subject to conditions including NWF shareholder approval and Final Investment Decision by both parties which includes satisfactory consenting, third party contracting and financing arrangements.

As part of the commercial terms, NWF will today make a placement of 43.2m NWF shares to Meridian, amounting to 15% of its existing equity capital, totalling $6.7m, at a price of $0.155 per share. This represents a premium of 32% to the current market price of NWF shares ($0.117 per share on 25 October). Meridian will then have a 13.04% shareholding in NWF.

NWF will also undertake a pro-rata renounceable 1:8.5 rights issue of approximately 39.0m shares to existing NWF shareholders at a price of $0.155 per share (the same price as the Meridian placement), raising up to approximately $6.0m (Offer).

The Offer will be underwritten by Meridian up to approximately 28.8m shares (being up to approximately $4.5m).

The Board is delighted that Meridian is prepared to become a supportive minority shareholder in NWF, augmenting our agreed commercial terms and providing NWF with a platform for future growth. The NWF Board will invite Neal Barclay, the CEO of Meridian, to join the NWF Board (non-remunerated) after the annual shareholders meeting.

A Letter to Shareholders setting out further particulars and important information accompanies this announcement.

For further information, contact Warren Koia, Chief Executive, by phone on 06 280 2773, or by email at [email protected].

Nga mihi | Thank you

Craig Stobo
Chairman

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Announcement PDF