UPDATE 2-Tilt Renewables accepts $2.2 bln takeover offer, to snub rival bids

* Consortium raises offer to NZ$8.10 per share

* Largest shareholder backs new proposal

* Canada’s CDPQ made NZ$8 per share bid - media (Adds details on offer, Infratil comment, and background)

April 16 (Reuters) - Tilt Renewables said on Friday it accepted a higher bid from a consortium that included its second-largest shareholder and AGL Energy, after it raised the offer for the wind farm operator, valuing it at NZ$3.07 billion ($2.20 billion).

The agreement comes amid reports here that Canadian pension fund CDPQ had made a bid of NZ$8 per share for Tilt, and that the Melbourne-headquartered company's board had urged the consortium to match the offer.

The company is being prized for its 20 operational or under-development wind farms amid a global push towards clean, renewable energy.

The new offer of NZ$8.10 per share is at a 6.6% premium to the stock’s close on Wednesday, and 3.8% higher than the previous price of NZ$7.80 per share.

Tilt shares, which rallied 17% since the consortium tabled its first bid on March 15, were halted on Thursday as the company held talks for a better offer.

If a deal goes through, Tilt will sell its Australian assets to Powering Australian Renewables (PowAR), a partnership between AGL, investment manager QIC and Australia’s sovereign wealth fund. The company’s second-largest investor Mercury NZ will snap up its New Zealand assets.

Tilt said on Friday that it had briefed PowAR and Mercury of the competing proposal earlier this week, without disclosing details of the offer.

AGL and PowAR declined to comment further.

The company also agreed to a number of amendments to the initial deal, which would prevent it from considering any competing bids.

Infratil Ltd, Tilt’s largest shareholder, said it supports the new offer and expects to bank NZ$2 billion from the sale of its 65.5% stake.

$1 = 1.3970 New Zealand dollars Reporting by Arundhati Dutta in Bengaluru, Additional reporting by Rashmi Ashok; Editing by Shounak Dasgupta, Shailesh Kuber and Sherry Jacob-Phillips