Meridian Energy (ASX:MEZ) has agreed to sell its Australian business Powershop to a consortium comprising of Shell’s subsidiary Shell Energy and Infrastructure Capital Group (ICG) for $729 million.
On completion, electricity provider Shell will become the owner of the retail business, Powershop Australia, while infrastructure investor ICG will become the owner of the infrastructure assets, which consist of Mt Mercer and Mt Millar wind farms, Hume, Burrinjuck and Keepit hydro power stations and development assets.
Subject to limited conditions, completion is expected to occur in the first quarter of 2022.
“With emissions the problem, and renewable energy the solution, the buyers are readying to invest heavily in a cleaner future. The Meridian Australia team will be at the heart of a transformation that is not only good for Australia, but also the planet,” said Meridian CEO Neal Barclay.
Agreements have 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.
Jason Stein, CEO of Meridian Energy Australia and Powershop Australia, will continue in his role until March 31 2022 or the completion of the sale.
Shares in Meridian Energy (ASX:MEZ) are trading 1.6 per cent lower at $4.40.