IFT own 51% of Manawa energy in NZ and will get a nice little 48% increase in cash and shares from their sale Contact energy.
Infratil confirms support for Contact Energy’s proposed acquisition of Manawa Energy
Infratil, which owns 51% of Manawa Energy, will support Contact Energy’s proposed
acquisition of Manawa pursuant to a Scheme Implementation Agreement, subject to certain
conditions.
Manawa today announced that it has entered into a Scheme Implementation Agreement where
Contact will acquire 100% of Manawa via a scheme of arrangement, if approved by Manawa’s
shareholders (Scheme). Manawa shareholders will receive cash consideration of $1.16 per
share[1] and 0.5719 Contact shares for every Manawa share they hold prior to implementation
of the Scheme. A copy of the Manawa announcement is attached.
Infratil CEO Jason Boyes said Infratil has entered into a binding Voting Agreement with
Contact under which Infratil has committed to vote its 51% stake in Manawa shares in favour
of the Scheme subject to certain conditions.
“The total offer price of $5.95 - based on the 5-day volume-weighted average price of
Contact’s shares prior to announcement - represents around a 48% premium to the Manawa
share price prior to the announcement.
”
“If the Scheme proceeds as announced, and subject to any pre-completion dividends, Infratil’s
gross cash proceeds from the sale will be approximately NZ$186 million and following
completion we will own approximately 9.5% of Contact.”
"This transaction represents a significant step in enhancing the combined capabilities of both
Manawa and Contact. By integrating Manawa’s hydro assets with Contact’s diversified energy
portfolio, the merged entity will create a more resilient and flexible generation platform. With
balance sheet and scale efficiencies, the combined entity will retain capital optionality and will
be well-positioned to advance both companies’ development pipelines to further support the
decarbonisation of the New Zealand electricity sector."
Mr Boyes said the proposed transaction is the next step in a 30 year relationship, which began
with Infratil’s 1994 initial public offering, when Trustpower – as Manawa was then known – was
its first investment.
“Since 1994, Infratil has supported Manawa’s growth and a series of transformative
transactions, including the demerger of Tilt Renewables and the sale of its Australian hydro
assets and retail business.”
“We see this merger with Contact Energy as a natural continuation of this journey. We are
excited to back the Contact team as they take the combined business forward. We believe this
transaction represents fair value for Manawa shareholders and reinforces our commitment to
the future of the New Zealand electricity sector.”
“Infratil fully supports the intended appointment of Deion Campbell as a director of Contact
from the date of implementation of the Scheme. Deion will provide continuity and support to
the integration of Manawa’s business and assets, and growth of the combined business.”
