Australian investment house Tag Pacific has entered into an amended sale and purchase agreement with Carnegie Clean Energy to acquire its Energy Made Clean (EMC) business.
Under the new deal, Carnegie Clean Energy will receive 17.5% of Tag Shares, fully diluted, after completion of the acquisition, and a proposed capital raising by Tag.
To date, Tag has invested in various companies and activities that have been brought together primarily to operate under the banner of MPower.
The latest acquisition is expected to accelerate MPower’s growth plans and strengthen bidding opportunities, as well as capitalise on the rapidly growing off-grid and fringe-of-grid solar, battery storage and microgrid market.
Tag intends to combine its EMC business with MPower in order to create an ASX-listed renewable and battery storage business.
The newly formed business entity will combine the engineering, procurement and construction (EPC) activities of both businesses under the MPower brand and continue to maintain its presence in New South Wales (NSW) and Western Australia (WA) to deliver a national and regional capability.
It also intends to integrate EMC’s solar and battery storage project development pipeline in order to form a stand-alone build, own and operate solar and microgrid asset portfolio in the future.
Completion of the deal is subject to a number of conditions including A$4m ($2.8m) capital raising by Tag, as well as third-party consents and changes to the EMC Lendlease Joint Venture being agreed. The two companies expect the deal to complete by end of next month.
Tag will issue a convertible note to Carnegie Clean Energy, which can be converted into the Tag shares subject to Tag shareholder approval.