This week, the demerger of Trustpower became effective. This transaction, first announced to the market in December 2015, is a historical milestone for both Trustpower, and for renewable generation in Australasia. Russell McVeagh was involved in all aspects of the transaction.
As a result of the demerger, Trustpower (a NZX-listed company with a total asset base of approximately NZ$3.8 billion) has separated into two independent publically-listed entities: Tilt Renewables Limited, which now holds Trustpower’s Australian and New Zealand wind assets, as well as its wind and solar development projects; 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.
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.
The implementation of the demerger was not without its challenges. 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).
Joe Windmeyer, Partner in Auckland’s Corporate Advisory Group says, “We are pleased to have been part of the successful creation of two new companies to enhance shareholder opportunities and to reflect and support strategic goals across both businesses”.
Russell McVeagh congratulates Management and the Boards of Tilt Renewables and ‘new’ Trustpower on this achievement.
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