New Zealand’s largest fuel retailer, Z Energy is to purchase more than 70 per cent of Flick Electric – a relatively new market entrant aiming to make the electricity industry simpler and more transparent.
MinterEllisonRuddWatts corporate partners Paul Foley, John Conlan and Rodney Craig advised on the $46 million transaction which is a future-focused strategic move by Z Energy.
Privately owned and starting in 2014, Flick was the first electricity retailer to offer customers time-of-use pricing based on wholesale electricity prices plus its margin.
“Investing is an electricity start-up may seem like a bold move by Z Energy, but the two companies are clearly aligned when it comes to maximising opportunities for innovation in New Zealand’s energy sector and the country’s transition to lower carbon use,” says Paul Foley.
“The partnership marries Flick’s start-up attitude with Z’s scale and resources, and they agree on the need for more innovation in this changing sector.
“We’re delighted to have worked with Z on another key project, helping the team build on its “What is Next” strategy to provide long-term sustainable value.”
The transaction will see Z Energy paying $15.6 million for new shares in Flick Electric, giving it a 22% stake, and it will buy extra existing shares for $30.4 million to take its stake to 70.1%.
