Contact Energy takes full ownership of Simply Energy
10 August 2020
Media release
Contact Energy takes full ownership of Simply
Energy
Contact Energy (‘Contact’) will take full ownership of Simply Energy (simplyenergy.co.nz), a
Wellington-based business that delivers energy solutions for generators, distributors,
retailers and commercial customers. The transaction is expected to be completed on 31
August 2020.
Contact Deputy CEO James Kilty said Simply Energy provided an effective platform and
valuable, innovative solutions for customers across New Zealand. “We’ve been working
closely together over the past 16 months and it’s great to be taking the next step with the
Simply team. We see Simply Energy playing an increasingly important role in helping
companies reduce their carbon footprint and accelerating the decarbonisation of New
Zealand’s energy system”
Simply Energy will continue as an independent agile solutions business and deliver solutions
as part of a new initiative called #changematters which has been developed to engage
customers in taking action for a cleaner energy future for New Zealand.
“We see a real opportunity for New Zealand to benefit substantially from the use of its
abundant renewable energy sources and emerge with a growing and resilient commercial
and industrial sector. We are uniquely placed to use this advantage to accelerate the
decarbonisation of existing industry and to attract new industry to our shores. Our acquisition
of Simply Energy will help us move faster, take action and focus our energy where it really
matters.”
In June 2019, Contact acquired a 49.9 per cent shareholding in Simply Energy for the
purchase price of $10.7 million. The transaction included an option for Contact to buy the
remaining shares in Simply Energy.
The purchase price for the remaining shares (50.1%) in Simply Energy’s performance
comprises a fixed price of $7.3 million to be paid over FY22 and FY23, and the potential for
a performance-based payment linked to the achievement of stretch earnings and
decarbonisation targets.
The acquisition is cash-funded using existing credit facilities.
-ends-
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