Underpinning PowAR’s bid to buy a $3bn renewables business to grow and diversify
How can partnering with a well-connected and respected advisor improve changes of a successful transaction?
Powering Australian Renewables Fund (PowAR) planned to significantly grow their 900MW Australian portfolio while diversifying their renewable assets across the continent. Buying Tilt Renewables would do both. Indicatively valued at $3 billion, this renewables portfolio of eight operating assets and 11 developing projects would boost PowAR’s size and hand them assets like wind farms, solar farms and batteries.
Having already helped with their strategy, PowAR asked us to support them as market advisors in the bidding process. With 20-30 bidders, competition was steep and the fund would benefit from Baringa’s close relationships not just with the banks, crucial for getting the financing to buy, but also the seller, Tilt. Being trusted on all sides would allow us to act as an honest broker and give all parties confidence in the numbers.
Due diligence, clear expectations and realistic timeframes
Working directly with the CEO and his business development team, we provided due diligence on Tilt’s assets. Our bottom-up modelling, reporting and independent analysis fed into PowAR’s financial modelling and investment committee decisions, which underpinned their bid. Our team of market experts kept stress and tension to a minimum by setting clear expectations upfront about what we could deliver and by when. It was important to us that we were realistic about timeframes and avoided burn out, but we were also honest, responsive and easy to work with over a tough 6–8-week sprint.
Making moves and changing status
Together, we met their internal and external deadlines and PowAR formed a successful bid to takeover. Approximately a $3 billion acquisition, this energy transaction was by far the largest in Australia in 2021. Overnight, PowAR became Australia’s biggest Independent Power Producer (IPP), going from fund to fully functional business. The management team moved to Melbourne, and PowAR’s CEO became CEO of Tilt. Tilt was taken off the stock market, changing its risk profile and giving it more agility in the market over investment opportunities. With no external shareholders, ownership and management were better aligned, as were Tilt’s investment decisions and funding.
Want to discover how we can help you? Explore our Digital Strategy consulting services
Related Client Stories
Maximising impact from AI investment for a global energy leader
Discover how a series of experiential learning events resulted in employee confidence in AI skills hitting 85%.
Read more
Maintaining the stability of the New South Wales power system
How do you ensure the future stability of the NSW power system?
Read more
Using AI to manage applications for connecting low-carbon devices
With growing calls for processes to be standardised, Baringa and Energy Networks Association (ENA) came together to develop and launch the first central industry platform to transform the way registrations for low-carbon devices are managed.
Read more
Collaborating globally to future proof Australia’s water resources
How do you effectively manage the ever-evolving supply and demand challenges of water resources?
Read moreAre digital and AI delivering what your business needs?
Digital and AI can solve your toughest challenges and elevate your business performance. But success isn’t always straightforward. Where can you unlock opportunity? And what does it take to set the foundation for lasting success?