Contact Energy Enters NZD 1.86 Billion Deal to Buy Manawa Energy

New Zealand-based Contact Energy Limited has announced that it has entered into an agreement to acquire local renewables firm Manawa Energy Limited in a deal valued at NZD 1.86 billion ($1.14 billion).  

Manawa Energy, headquartered in Tauranga, operates 25 hydroelectric sites across New Zealand and has a robust pipeline of over 1,200 megawatts in wind and solar projects under development.  

With a combined development pipeline exceeding 10 TWh, this acquisition aligns with Contact Energy’s strategy to expand its renewable generation capacity and further its goal of decarbonizing its portfolio. 

“The combination with Manawa would result in a combined development pipeline of more than 10 TWh and would further enhance Contact’s strong development capabilities, accelerating Contact’s strategy to grow renewable generation while decarbonising its portfolio,” said Contact’s chairman Rob McDonald. 

Cyan Renewables to buy its Australian peer for A$1.1 billion

Under the terms of the deal, each Manawa share will be exchanged for 0.5719 Contact Energy shares and NZD 1.16 in cash, valuing Manawa at NZD 5.95 per share.  

This deal represents a 47.4% premium over Manawa’s 30-day volume-weighted average price (VWAP) and a normalized enterprise value to EBITDA acquisition multiple of 10.7x. Upon completion of the transaction, Manawa’s current shareholders will hold about 18.5% of the combined entity. 

The transaction has already received conditional support from Manawa’s major shareholders, Infratil and TECT Holdings, which together own approximately 77.9% of Manawa’s shares. Pending regulatory approval, the deal is expected to close in the first half of 2025.