Infrastructure Capital Group

A$740m acquisition of Meridian Energy Australia Group

November 2021

In November 2021, Infrastructure Capital Group (“ICG”) and Shell Energy Operations Pty Ltd (“Shell”) (together the “Consortium”) agreed to acquire Meridian Energy Australia Group (“MEA”). The transaction reached financial close in January 2022 and MEA was acquired by the Consortium for a total consideration of A$740 million.

The Consortium will separate MEA, with Shell acquiring Powershop (MEA’s energy retail business), and ICG acquiring the wind, hydro and development assets including:

  • Mount Millar Wind Farm, SA – 70 MW
  • Mount Mercer Wind Farm, VIC – 131 MW
  • Hume Hydro Power Station, NSW / VIC border – 58 MW
  • Burrinjuck Hydro Power Station, NSW – 34 MW
  • Keepit Hydro Power Station, NSW – 7 MW
  • Rangoon Wind Farm, NSW – 108 MW (development)
  • Hume BESS, NSW / VIC border – 20 MW / 40 MWh (development)

As part of the separation, Shell has agreed to acquire all output from the wind and hydro assets under various Power Purchase Agreements.

ICG is a leading Australian infrastructure manager, with approximately A$3.5 billion of equity under management and a diversified portfolio of infrastructure assets. The acquisition increases ICG’s operating renewable energy generation capacity under management to +1,100MW and expands the extensive development pipeline of opportunities to +2,750MW.

Azure acted as financial adviser to ICG on the acquisition, including the provision of valuation, structuring and strategic advice, procurement of portfolio debt financing and negotiation of relevant transaction agreements.