HMC Faces Integration Risks as It Merges Renewable Platforms and Changes CEO
HMC Capital has delayed the Neoen VIC Portfolio acquisition settlement by one month, secured a $200 million mezzanine financing facility, and announced a strategic merger of its renewable energy platforms under new leadership.
- Neoen VIC Portfolio acquisition settlement deferred to August 1, 2025
- $200 million non-recourse mezzanine financing secured from global banks
- Merger of Neoen VIC Portfolio and Stor Energy battery platforms announced
- Gerard Dover appointed CEO of the consolidated Energy Transition platform
- Bulgana Wind Farm turbine fire incident with minimal expected cashflow impact
Acquisition Delay and Financing Secured
HMC Capital Limited (ASX – HMC) has announced a one-month deferral of the financial close for its acquisition of Neoen Australia’s Victorian assets, now scheduled for 1 August 2025. This delay follows the December 2024 announcement of the $950 million deal, structured with two instalments – $750 million at financial close and a final $200 million payment due in December 2025.
Crucially, HMC has secured a $200 million non-recourse mezzanine financing facility from two global banks to support this acquisition. This mezzanine debt complements the previously underwritten senior debt of approximately $550 million, which includes working capital and development capital facilities to advance key projects like the Moorabool Battery Energy Storage System (BESS) and Kentbruck Wind Farm.
Strategic Platform Merger and Leadership Change
In a significant strategic move, HMC plans to merge the Neoen VIC Portfolio with its Stor Energy battery platforms, creating one of Australia’s leading renewable energy operating and development platforms. This consolidation aims to leverage the embedded value of the combined assets and streamline operations under a unified management team.
Gerard Dover, co-founder of Stor Energy and a seasoned energy sector executive with over 30 years of experience, has been appointed CEO of the merged Energy Transition platform. Dover’s leadership is expected to drive growth and operational excellence across the expanded portfolio. Meanwhile, Angela Karl, the outgoing Managing Director and Head of Energy Transition, has stepped down after playing a pivotal role in establishing HMC’s energy transition capabilities.
Operational Update and Development Pipeline
The Bulgana Wind Farm experienced a fire incident in late May affecting one of its 56 turbines. Following a thorough safety review, 49 turbines are currently operational, with full restoration expected shortly. HMC does not anticipate any material impact on cashflows or returns from this asset.
Looking ahead, HMC’s development pipeline remains robust, with advanced projects like Moorabool BESS and Kentbruck Wind Farm progressing toward final investment decisions within the next 12 to 24 months. These projects, alongside Stor Energy’s battery pipeline, position HMC to capitalize on Australia’s accelerating energy transition.
Value Optimization and Strategic Options
HMC is actively evaluating multiple strategic options to optimize the value of its Energy Transition portfolio. These include ongoing fund raising discussions, potential strategic partnerships or mergers with major financial investors, and portfolio rationalization or sales. The company emphasizes its commitment to delivering sustainable, long-term returns through a capital-light, high-return asset management model.
Chair of Energy Transition, The Hon. Julia Gillard AC, highlighted the significance of the new financing and platform consolidation in advancing HMC’s ambition to be a national leader in Australia’s net zero carbon economy by 2050.
Bottom Line?
HMC’s strategic consolidation and financing moves set the stage for accelerated growth, but investors will watch closely for fund raising outcomes and operational execution.
Questions in the middle?
- How will the one-month acquisition delay affect HMC’s broader energy transition timeline?
- What are the terms and conditions of the $200 million mezzanine financing facility?
- How will Gerard Dover’s leadership influence the integration and future strategy of the merged platform?
