Wollemi Capital buys renewables platform

The climate-focused investment firm will pay $19 million for MPower Group's renewable energy and battery storage business after the latter faced challenges in securing funding.

MPower has agreed to sell the renewable energy platform to Wollemi, in a deal that includes most of the business' assets and subsidiaries.

Under the deal, Wollemi will take over the renewable energy platform, the Lakeland Solar and Storage Project, a pipeline of potential projects, MPower's services business, and certain other assets.

The business name would also be changed to MPR Australia Limited.

The deal has been unanimously endorsed by the MPower board.

MPower chief executive Nathan Wise said he is proud of the success of the MPower business so far.

"MPower has achieved significant milestones in recent years with the backing of its shareholders and the support of its lenders. The scale of the future opportunity is very large, and it has been challenging to secure project funding in a way that can deliver a sustainable and acceptable outcome to MPower shareholders," he said.

"The time has come for the next phase of growth under new owners who can bring greater financial capacity.

"Wollemi's strategic alignment, growth focus and energy transition expertise make it uniquely positioned to create future value through combining its investment expertise and financial resources with the skills, assets and opportunity that the MPower business brings."

The transaction is expected to complete on August 12, at which time MPower is expected to have a surplus of $3.8 million following the payment of all debts. After this, it said it will consider its options, including whether it returns capital to shareholders, acquires a new business through a backdoor listing, or both.