The Tilt Renewables Ltd (ASX: TLT) share price is back in the news. Shares in the trans-Tasman renewables group surged higher in March after agreeing a $2.7 billion takeover offer led by AGL Energy Limited (ASX: AGL) and Mercury NZ Ltd (ASX: MCY).
That could be about to change, however, with a rival bidder lobbing an offer worth 20 NZ cents per share more.
Why is the Tilt Renewables share price on watch?
According to an article in the Australian Financial Review (AFR), Canadian pension fund CDPQ has re-entered the bidding war.
CDPQ has reportedly offered NZ$8.00 per share for Tilt. That is higher than the NZ$7.80 per share agreed with a vehicle established by QIC Ltd, AGL and Mercury.
According to the article, CDPQ's offer is understood to be binding and fully funded. PowAR, the shared investment vehicle of QIC and AGL, and Mercury do hold a matching right in the deal.
The Tilt Renewables share price will be one to watch as the takeover saga drags on. However, shares in the Aussie renewables group remain in a trading halt since Thursday.
CDPQ has over C$360 billion in assets under management and is a major Canadian pension fund. That puts the ball back in PowAR and Mercury's court on whether they want to match the NZ$8.00 per share bid.
The Tilt Renewables share price last traded at $7.00 per share on the ASX. On New Zealand's Stock Exchange (NZX), Tilt's shares last traded at NZ$7.60 per share.
Goldman Sachs is advising Tilt's largest shareholder, Infratil Ltd (ASX: IFT), which currently owns a 65.5% stake in the trans-Tasman group.
According to today's article in the AFR, both the PowAR/Mercury bid and CDPQ see strategic value in the significant portfolio of Australian and New Zealand renewables assets.
Foolish takeaway
The Tilt Renewables share price will be worth watching when it returns to trade as takeover bids heat back up. CDPQ has re-entered the bidding war
