Meridian selling Australian business for $752m

Meridian has agreed to sell its Australian business to a consortium of Shell and Infrastructure Capital Group for A$729 million (NZ$752m). Shell will become the owner of retail business Powershop Australia while ICG will become the owner of the infrastructure assets including Mt Mercer and Mt Millar wind farms, Hume, Burrinjuck and Keepit hydropower stations and development assets. The sale is subject to conditions including Shell receiving foreign investment approval from the Australian Government. The deal is expected to be completed in the first quarter of 2022. Meridian Energy chief executive Neal Barclay says the transaction is an outstanding result for Meridian’s shareholders. It was a testament to the quality of the Meridian Energy Australia business and its staff, he said. Agreements had been put in place with Flux Federation, a Meridian subsidiary, for Powershop Australia’s retail software services and Meridian Energy Australia’s call centre based in Masterton, he said. The agreements would be in place for minimum of three years, he said. A transitional services arrangement had been agreed, which would allow for a transition of services currently provided by Meridian Energy Limited to Meridian Energy Australia for a period of up to one year, he said.