A local energy retailer’s $100m deal to sell itself to a Chinese renewables developer is in jeopardy as delays in receiving approval from the Foreign Investment Review Board linger.
Australia’s TPC Consolidated, the parent company of electricity and gas retailer CovaU, agreed to a takeover by Beijing Energy International Holding’s Wollar Solar Holding in March 2024 but it has not received the green light.
The Chinese company told TPC it still awaits a decision from FIRB and had not been met by the sunset date of November 28.
Since the deal was not approved by this date, the deal could fall through if either company serves a written notice to the other and they cannot agree how to proceed with the sale within five business days.
The Beijing company told TPC it was engaging with FIRB and that the government agency granted it another extension to facilitate the review.
“TPC will continue to operate independently and prudently, focusing on managing its business effectively and positioning TPC for whatever outcome eventuates,” TPC told shareholders.
“At this stage, shareholders do not need to take any action.”
TPC investors will receive $8.77 per share alongside a $2,64 per share special dividend and potentially another $4.41 per share if the sale goes ahead.
After the deal was first announced last year, TPC chair Greg McCann lauded the deal and argued it was the right path for the company to take.
“The TPC Board has unanimously concluded that the scheme is in the best interests of the company’s shareholders,” Mr McCann said.
“It came to this view after a detailed examination of the scheme and the likely scenarios it presented to TPC and its stakeholders.”
The company’s share price, which is currently in a trading halt, last traded at $6.03.
