HMC Capital Limited (ASX:HMC) Acquires Neoen Victoria Portfolio
Strategic Acquisition Announcement
HMC Capital Limited (ASX: HMC) has entered into agreements to acquire Neoen’s Victorian portfolio for $950 million. This acquisition comprises four operational assets with a combined generation capacity of 652MW and six development assets aiming for over 2,800MW. The purchase is a significant move to establish HMC’s inaugural Energy Transition Platform, with fundraising efforts progressing for a first close in the first half of CY25 ahead of the acquisition’s financial close set for July 2025.
Financial and Operational Highlights
The acquisition will increase HMC’s Assets Under Management (AUM) to approximately $19 billion, with a goal to exceed $20 billion by FY25. HMC has secured approximately $550 million in senior debt financing to support the acquisition, structured to align with capital from institutional investors.
The newly acquired portfolio features robust cash flow generation—around 85% of its capacity is contracted. HMC’s move positions it for a top 10 spot in renewable generation and storage in the National Energy Market. The operational capacity and growth pipeline will increase overall capacity to approximately 6.2GW, marking a notable milestone in the firm’s growth strategy.
Executive Comments
David Di Pilla, Managing Director and CEO of HMC Capital, stated, “Our move into the Energy Transition sector reflects the significant level of investment required both in Australia and globally to achieve decarbonisation targets.” He highlighted the strong interest from domestic superannuation funds to be foundational investors due to the attractive long-term fundamentals.
Julia Gillard AC, Chair of Energy Transition at HMC Capital, noted, “Today is an exciting and significant step in our ambition to be a national champion of Australia’s transition to a net zero carbon economy by 2050.” She emphasised the acquisition’s importance in enhancing HMC’s diverse renewable energy generation and storage assets.
Angela Karl, Head of Energy Transition, remarked, “This acquisition represents a unique opportunity to secure a high-quality, technologically diversified operational portfolio. It solidifies our top 10 position in renewable energy from day one.”
Future Outlook
HMC Capital is positioning itself strategically for the long term, aiming for a $100 million equity investment in its Energy Transition Platform with an expected 20%+ return on invested capital. The acquisition is anticipated to be immediately earnings accretive after the financial close in FY26.
Macquarie Capital served as the financial advisor for this acquisition.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended HMC Capital. The Motley Fool Australia has recommended HMC Capital. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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