A number of reasons complicated the deal, the lead partner says
Chapman Tripp has helped close a complex $200m acquisition in the energy sector.
The top firm acted for Gas Services NZ on its acquisition of the Ahuroa Gas Storage Facility from Contact Energy. The deal closed on 1 October.
The Chapman Tripp team, which advised on all aspects of the transaction, was led by partner John Strowger, with support from senior solicitor Tom Jemson.
Strowger said that the deal opens opportunities for both Gas Services NZ and Contact Energy. Gas Services NZ will expand the facility within two years to increase its flexibility, while Contact Energy can use the funds to pay down debt even as it ensures it will still be able to store gas in the facility.
“The transaction was complicated for numerous reasons. It involved the acquisition of a unique asset and required the parties to agree to long-term commercial arrangements to govern Contact Energy’s future use of the facility, in addition to the acquisition documentation,” Strowger said. “Further, achieving completion of the transaction required the parties to satisfy a number of conditions precedent, including obtaining ministerial consent under the Crown Minerals Act and consent under the Overseas Investment Act.”
John Strowger
