Contact Energy’s move to acquire Manawa Energy gets advice

Bell Gully says it will be advising Contact Energy on its proposed acquisition of Manawa Energy for about $2.3 billion through a court-approved scheme of arrangement.

Contact has entered a Scheme Implementation Agreement to acquire 100% of Manawa Energy, a renewable electricity generator which owns and operates 25 hydro schemes around New Zealand.

Subject to Commerce Commission approval and other conditions, the scheme’s implementation is targeted for the first half of 2025.

Contact says the acquisition will diversify its generation portfolio and provide different seasonal generation profiles which will help it to better manage dry year risk.

It says the acquisition will also enhance Contact’s development capabilities, accelerating its strategy to grow renewable generation while decarbonising its portfolio.

Manawa has hydro assets that complement Contact’s hydro portfolio, and more than 1200MW of geographically diversified, secured development options in wind and solar, says Bell Gully.

Under the scheme, Manawa shareholders will receive consideration valued at NZ$5.95 per Manawa share, implying an enterprise value of NZ$2.3 billion, it says.

“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,” says Bell Gully partner Amon Nunns.

The Bell Gully team is led by corporate partners Nunns and James Cooney, Glenn Shewan (competition) and Zac Kedgley-Foot (financing), assisted by senior associates, Lincoln Matthews, Kelsey Lindsay and Penny Pasley.

Cameron Partners Limited/Rothschild & Co and UBS New Zealand Limited are acting for Contact as joint financial advisers while Manawa’s financial adviser is Lazard Australia and its legal adviser is Harmos Horton Lusk.