MPower’s Renewable Energy Exit Hinges on Shareholder Vote and Lakeland Restart
MPower Group has struck a deal to sell nearly all its renewable energy assets to Wollemi Energy Group for about $19 million, unlocking significant shareholder value and setting the stage for a strategic reset.
- Sale includes renewable platform, Lakeland Solar & Storage, and services business
- Transaction values MPower at a 37.5% premium to recent share price
- Shareholder approval required; directors unanimously recommend the deal
- MPower to retain $3.8 million surplus cash post-sale
- Company to rebrand as MPR Australia Limited following completion
A Strategic Shift in MPower’s Renewable Energy Journey
MPower Group Limited (ASX – MPR), a specialist in renewable energy and battery storage development, has agreed to sell substantially all of its business and assets to climate-focused investment firm Wollemi Energy Group Pty Limited for approximately $19 million in cash. This transaction marks a significant pivot for MPower, which has built a notable portfolio of clean energy projects, including the Lakeland Solar & Storage Project.
The deal encompasses MPower’s renewable energy platform, its project pipeline, and services business, with all current employees offered positions with the buyer. The sale is expected to leave MPower with around $3.8 million in surplus cash after repaying liabilities, translating to a net asset value of 1.1 cents per share. This represents a premium of 37.5% to the last trading price before the announcement and a 43.2% premium to the 30-day volume weighted average price.
Rationale Behind the Sale
MPower’s CEO Nathan Wise highlighted the challenges in securing sustainable project funding at scale, despite the company’s strong track record and milestones achieved. The sale to Wollemi, a firm with deep expertise and financial capacity in climate investments, is positioned as the best path forward to fully leverage MPower’s capabilities and unlock future growth potential under new ownership.
Wollemi’s strategic alignment with energy transition themes and its investment focus on sustainable infrastructure suggest it is well placed to accelerate the development and value creation of MPower’s assets. The transaction is structured to ensure continuity, with key employees transitioning to Wollemi and conditions including the re-energisation of the Lakeland Solar & Storage Project.
Transaction Details and Next Steps
The $19 million purchase price is payable mostly at completion, with $2 million deferred for six months subject to agreed terms. The sale is conditional on shareholder approval, novation of key contracts, employee agreements, and technical milestones related to the Lakeland transformer. The company plans to seek shareholder approval at a general meeting scheduled for 16 July 2025, with completion targeted for 12 August 2025.
Post-completion, MPower intends to use proceeds to settle debts and creditors, with options to return capital to shareholders, pursue a backdoor listing, or a combination thereof. The company will also change its name to MPR Australia Limited, signaling a new chapter.
Governance and Protections
The agreement includes exclusivity provisions preventing MPower from soliciting competing offers, with a $400,000 break fee payable if shareholder approval is not obtained or if directors withdraw support. Deferred consideration and indemnity clauses provide safeguards for both parties, particularly around the operational status of the Lakeland transformer and employee transitions.
Directors have unanimously recommended shareholders vote in favor of the transaction, underscoring confidence in the deal’s value and strategic merits. However, the company remains open to superior proposals should they arise.
Bottom Line?
MPower’s sale to Wollemi closes a chapter on its independent renewable energy ambitions, but the next moves; whether capital return or new ventures; will be critical for shareholders.
Questions in the middle?
- Will shareholders approve the sale and the proposed name change at the upcoming meeting?
- How quickly can Wollemi re-energise and scale the Lakeland Solar & Storage Project?
- Could a competing proposal emerge before the exclusivity period ends, altering the deal dynamics?