Meridian agrees terms for the sale of Australian business

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Stock Exchange Listings NZX (MEL) ASX (MEZ)
Meridian agrees terms with Shell and Infrastructure Capital
Group for the sale of its Meridian Energy Australia business

22 November 2021
Meridian’s Board has agreed the sale of Meridian’s Australian business to a consortium of
Shell Energy Operations Pty Ltd, a wholly owned subsidiary of Shell (“Shell”) and
Infrastructure Capital Group (“ICG”) (together, “the Consortium”) for A$729 million, subject
to possible adjustment depending on the timing of completion.

On completion, Shell will become the owner of the retail business, Powershop Australia,
while ICG will become the owner of the infrastructure assets (Mt Mercer and Mt Millar wind
farms, Hume, Burrinjuck and Keepit hydro power stations and development assets).

The sale is subject to limited conditions precedent including Shell receiving foreign
investment approval from the Australian Government. Completion is expected to occur in
the first quarter of 2022.

Meridian Chief Executive Neal Barclay said that the transaction is an outstanding result for
Meridian’s shareholders and a testament to the quality of the Meridian Energy Australia
business and the employees who have been dedicated to its success. The transaction
represents an exciting opportunity for the future of the Meridian Energy Australia business,
given Shell’s and ICG’s intentions to grow their respective renewable energy and retail
presences in Australia.
“With emissions the problem, and renewable energy the solution, the buyers are readying
to invest heavily in a cleaner future. The Meridian Australia team will be at the heart of a
transformation that is not only good for Australia, but also the planet,” says Barclay.

Agreements have been put in place with Flux Federation, a Meridian subsidiary, for
Powershop Australia’s retail software services and Meridian Energy Australia’s call centre
based in Masterton. These agreements will be in place for minimum of three years. Flux is
excited at the prospect of partnering with the new owner of Powershop’s business in
Australia, Shell, and the opportunities that may be pursued together in the future.
In addition, a transitional services arrangement has been agreed, which will allow for a
transition of services currently provided by Meridian Energy Limited to Meridian Energy
Australia for a period of up to 12 months.

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As previously announced by Meridian, Jason Stein, CEO of Meridian Energy Australia and
Powershop Australia, will continue in his role until 31 March 2022 or the completion of the
sale.

Meridian will continue to consider capital structure, dividend policy and future
opportunities for re-investment of the proceeds as settlement of the transaction
approaches. A further update will be provided at the company’s interim results presentation
on 23 February 2022.

Lazard Australia acted as Meridian’s Financial Advisor in respect of this transaction.

Shell Energy delivers business energy solutions across gas, electricity, environmental
products, and energy productivity for commercial and industrial customers. Shell Energy is
the second largest electricity provider to commercial and industrial businesses in Australia,
with market-leading customer satisfaction built on industry leading digital platforms,
industry expertise and personalised relationships. It also operates 662 megawatts of gas-
fired peaking capacity with power stations in Western Australia and Queensland and is
currently developing the 120-megawatt Gangarri solar energy development in Queensland.
Shell Energy Australia Pty Ltd and its subsidiaries, including Shell Energy Operations Pty Ltd,
trade as Shell Energy.

Infrastructure Capital Group is a leading Australian infrastructure investor with a 20-year
investment track record and approximately $3.0 billion of equity under management across
a wide range of infrastructure sub sectors, including energy, utilities, transport, and
renewables. ICG is the investment manager of three infrastructure equity funds: Diversified
Infrastructure Trust, Energy Infrastructure Trust, and the Australian Renewables Income
Fund (“ARIF”), an unlisted unit trust that acquires and develops assets in the renewable
energy infrastructure sector to provide institutional investors with consistent and attractive
risk-adjusted returns.

ENDS
Neal Barclay
Chief Executive
Meridian Energy Limited

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Owen Hackston
Investor Relations Manager
021 246 4772
For media queries, please contact:
Polly Atkins
External Communications Manager
021 174 1715