Contact Energy ink deal for Manawa Energy take over

The latter over 1.2 GW of secured wind and solar developments.

Contact Energy Limited is further expanding in New Zealand after it signed a scheme implementation agreement (SIA) to acquire 100% of Manawa Energy Limited.

“This acquisition will make Contact Energy a stronger, more resilient electricity company for New Zealand with a more diversified generation portfolio across the North and South Islands,” said Contact Chief Executive Mike Fuge.

Manawa is a renewable energy company that operates 25 hydro schemes with around 500 megawatts (MW) winter-weighted capacity. It also has secured around 1,200 MW of diversified wind and solar projects.

Contact Chairman Rob McDonald said the transaction will result in a development pipeline of over 10 terawatt hours.

Manawa shareholders are expected to receive $3.65 (NZ$5.95) per share and own around 18.5% of Contact shares following the completion of the acquisition.

Contact said the cash consideration and repayment of outstanding Manawa bank debt and bonds will be funded via new committed bank debt facilities.

“The conditions under the Scheme must be satisfied within nine months, subject to limited extensions in certain circumstances,” the company said.

Contact has tapped UBS New Zealand Limited and Cameron Partners Limited / Rothschild & Co as joint financial advisers and Bell Gully as its legal adviser.

US$1 = NZ$1.63