On 18 December 2015, major energy corporate Trustpower announced their intent on separating into two New Zealand incorporated listed companies by way of a Court approved scheme of arrangement.
As a result of the demerger Trustpower split into Tilt Renewables Limited, and ‘new’ Trustpower (formerly Bay Energy Ltd), which continues to operate Trustpower’s hydro-electricity generation assets and Trustpower’s multi-product retail business, which involves the supply of electricity, gas and telecommunications services.
Russell McVeagh was involved in all aspects of this transaction, which required drawing on the expertise of a number of our practice groups, including corporate advisory, litigation and tax. This is an excellent example of the collaborative way in which the firm often works on deals, drawing on the knowledge from a range of our expert’s respective fields, to deliver the most thorough analysis possible.
The demerger was effected by way of a ‘scheme of arrangement’ and required shareholder and Court approval. Shareholders approved the demerger on 9 September 2016 and the Court granted final approval on 19 October 2016. Trustpower was de-listed and put into liquidation. This was a particularly interesting element of the deal considering (as far as the firm is aware) this is the first major demerger in New Zealand given effect by way of a scheme of arrangement since the demerger of Telecom and Chorus in 2011 (Russell McVeagh acted for Telecom in that transaction).
This transaction, first announced to the market in December 2015, is a historical milestone for both Trustpower, and for renewable generation in Australasia.