High-flying S&P/ASX 200 Index (ASX: XJO) stock HMC Capital Ltd (ASX: HMC) is marching higher today.
Shares in the alternative asset manager closed yesterday trading for $12.19. In morning trade on Thursday, shares are changing hands for $12.26 apiece, up 0.57%.
For some context, the ASX 200 is up 0.13% at this same time.
As you can see on the chart above, it's been a banner year for longer-term HMC Capital shareholders, who've enjoyed 12-month share price gains of 146%. Not to mention the 12 cents a share in partly franked dividends the ASX 200 stock paid out over the full year.
Now, what's all this about a $950 million acquisition?
ASX 200 stock rises on renewables investment
This morning HMC Capital announced that it has entered into agreements to acquire French company Neoen's Victorian renewable generation and storage portfolio for the tidy sum of $950 million.
The agreement covers four operational assets totalling 652 megawatts and six development assets with a total capacity of more than 2,800 megawatts.
The ASX 200 stock said it has secured senior debt asset-level financing of around $550 million and deferred settlement terms, with $750 million due on financial close in July 2025 and the remaining $200 million payable in December 2025.
The company noted that the $950 million acquisition price was less than the replacement cost of the operating assets. It also highlighted that the acquisition included "a significant embedded growth pipeline".
Investors will also have noted that the company expects the new assets to be immediately earnings-accretive after the financial close in FY 2026.
The purchase of Neon's Victorian portfolio increases the ASX 200 stock's assets under management (AUM) to approximately $19 billion. The HMC said it's on track to surpass $20 billion in AUM in FY 2025.
What did management say?
Commenting on the purchase agreement that sees the ASX 200 stock in the green in morning trade, HMC Capital CEO David Di Pilla said, "Our move into the Energy Transition sector reflects the significant level of investment required both in Australia and globally to achieve decarbonisation targets."
Di Pilla continued:
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 & HMC's capability.
HMC Capital chair of Energy Transition, Julia Gillard, said the new assets would help the ASX 200 stock assist in the battle against climate change.
According to Gillard:
This is a marquee acquisition to further seed HMC's Energy Transition platform, encompassing a diversified range of renewable energy generation and storage assets.
We look forward to partnering with some of Australia's leading institutional investors in creating a clean energy future and fighting against climate change.
