The terms of the scheme of arrangement suggest that the deal has an enterprise value of $2.3bn
NZX lister Contact Energy has tapped a Bell Gully team for legal advice on its proposed acquisition of another NZX lister in Manawa Energy.
The pickup will take place via a court-approved scheme of arrangement. The scheme implementation agreement sees Contact Energy taking ownership of all Manawa Energy shares.
Moreover, the scheme will see Manawa shareholders secure a consideration valued at $5.95 per share; this suggests an enterprise value of $2.3bn.
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The acquisition is expected diversify Contact Energy’s generation portfolio and provide different seasonal generation profiles that will aid in the management of dry year risks. The deal is also expected to improve Contact’s development capabilities and speed up its strategy to expand renewable generation in the process of decarbonising its portfolio.
The acquisition scheme is pending approval from the New Zealand Commerce Commission and the fulfilment of other conditions. It is expected to be implemented in the first half of 2025.
"We're delighted to be supporting Contact in this important transaction. It’s particularly satisfying to advise on a deal with the potential to support New Zealand’s energy transition, as it will leave Contact well-placed to accelerate renewable development opportunities", Bell Gully partner Amon Nunns said.
Nunns headed up the firm’s team alongside fellow corporate partner James Cooney, competition partner Glenn Shewan and financing partner Zac Kedgley-Foot. The partners received support from senior associates Lincoln Matthews, Kelsey Lindsay, and Penny Pasley.
The joint financial advisers to Contact are Cameron Partners Limited/Rothschild & Co and UBS New Zealand Limited. Harmos Horton Lusk is advising Manawa, while Lazard Australia is Manawa’s financial adviser.
Manawa is a renewable electricity generator operating 25 hydro schemes across New Zealand. The company’s hydro assets complement Contact’s existing hydro portfolio.