Eastland Group has sold a 50% stake in its electricity generation business to Japanese construction conglomerate Obayashi Corporation.
Chapman Tripp advised long time client Eastland Group on all aspects of the sale including structuring, vendor due diligence, regulatory matters, and negotiation of transaction documentation with multiple bidders. The core transaction team included Partners Tim Tubman, Lauren Curtayne, Cathryn Barber, Tessa Baker, Hamish Bolland and Kylie Mutch.
Partner, Tim Tubman said, “Having helped Eastland Group sell its network business last year, we are pleased to have assisted Eastland secure a 50% investor into its generation business. This is a significant step to support Eastland Group’s goal to achieve 100MW of renewable generation by 2027, and New Zealand’s long-term target of 100% of our electricity being produced from renewable sources.”
Eastland Generation has a diverse portfolio of renewable energy plants in New Zealand’s North Island, with particular expertise in geothermal and hydro generation and a newly commissioned solar farm. Capital raised from the transaction will help fund construction of Eastland Generation’s strong pipeline of renewable generation projects, including the TOPP2 geothermal project at Kawerau.
Completion of the transaction is conditional on approval of the New Zealand Overseas Investment Office. The sale follows Eastland Group’s 100% sale of Eastland Network to Firstgas Group in 2022, which Chapman Tripp also advised on.
The sale was managed by Forsyth Barr. Obayashi Corporation was represented by Tompkins Wake.