HMC Capital shares rise on $950m renewables acquisition
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More news: Shares in HMC Capital lifted on the ASX after the investment manager agreed to acquire Neoen's Victoria-based renewable generation and storage assets for $950 million.
HMC Capital shares were up 1.5% to $12.38 by 2:50pm AEDT, having more than doubled in value since January.
HMC Capital acquires Neoen's Victoria assets for $950m
The news: Investment manager HMC Capital has agreed to acquire Neoen's Victorian renewable generation and storage portfolio for $950 million.
The numbers: The portfolio consists of four operational assets totalling 652 megawatts (MW) and six development assets with total capacity of over 2,800MW.
The assets comprise a 204MW wind farm and 20MW battery energy storage system (BESS) in Bulgana, a 128MW solar farm in Numurkah, and the 'Victorian Big Battery' — a 300MW battery storage project in Geelong.
HMC will pay French renewable energy giant Neoen $750 million in July 2025 and the remaining $200 million in December 2025.
The acquisition increases HMC's assets under management to around $19 billion, with the company on track to exceed $20 billion in FY25.
The context: HMC said the acquisition will further seed the company's inaugural 'energy transition platform', for which fundraising is on track for first close in the first half of the 2025 calendar year.
The acquisition is expected to be immediately earnings accretive after financial close in FY26.
What they said: "Our move into the energy transition sector reflects the significant level of investment required both in Australia and globally to achieve decarbonisation targets," said HMC's managing director and chief executive David Di Pilla.
"We have received a significant level of interest from domestic superannuation funds to be foundation investors in HMC's energy transition platform who are attracted to both long-term transition fundamentals and HMC's capability."
The source: ASX announcement
