Australian gas and electricity retailer CovaU is set to be acquired by Wollar Solar, the local subsidiary of state-owned Chinese energy company Beijing Jingneng Energy International (BJEI), for approximately AUD $100 million.
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CovaU is owned by TPC Consolidated Ltd.
Wollar Solar was established by BJEI Australia in 2021 to build and operate a portfolio of clean energy projects across Australia.
The TPC Board has unanimously recommended shareholders vote in favour of
the deal.
TPC chair Greg McCann said, “The TPC Board has unanimously concluded that the scheme is in the best interests of the company’s shareholders.
“It came to this view after a detailed examination of the scheme and the likely scenarios it presented to TPC and its stakeholders.
“The Board considered a range of factors, including a number of different valuation scenarios, potential risks relating to the future execution of TPC’s business growth plan, and the price at which TPC shares could trade over the medium- to longer-term if it continues as an ASX-listed company.”
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TPC is being advised by Deloitte M&A Advisory and Allens.
