Australia-based Frontier Energy has finalised an agreement to procure Waroona Energy. Frontier Energy will acquire the remaining 80 per cent ownership in this company in an all-stock arrangement according to the terms of the agreement.
Reportedly, Waroona shareholders will be given one new Frontier stock for every 4.27 Waroona stocks owned at a rate of $0.05049 per Waroona share. After the purchase wraps up, Frontier shareholders will hold approximately 69 per cent of the new firm, with Waroona shareholders owning the remaining 31 per cent.
Furthermore, the amalgamated company will have approvals for construction for 355 MW of solar generation capacity, comprising 114 MW of stage one solar capacity from Frontier and 241 MW from Waroona. Both these capacities are coming up in Western Australia. Moreover, the new firm is projected to have $14.03 million in cash, which would enable it to be completely supported until the final investment decision is concluded.
REGlobal’s Views: Through this combined entity, the company plans to have a fully integrated green hydrogen and renewable energy portfolio. Further, this combined entity will help the company to diversify and expand its portfolio in Australia’s renewable energy market.
