Contact Energy has completed the takeover of Simply Energy — a company that helps businesses reduce their carbon footprint.
In June last year Contact invested more than $10million into Simply Energy and had at that point taken a 49.9% holding in the company.
In an announcement to the NZX yesterday, Contact said it was now the 100% owner of Simply Energy.
"New Zealand needs to accelerate the decarbonisation of its energy system and we see Simply Energy playing an increasingly important role in helping companies across the country reduce their carbon footprint," Contact deputy chief executive James Kilty said.
"We know many organisations are wanting to make changes but are struggling with where to start and how to get momentum."
Simply Energy helps businesses with their electricity management as well as offering "decarbonisation" solutions.
Simply Energy managing director Murray Dyer said being 100% bought by Contact Energy was an "important milestone".
"With the full backing of Contact we’ll be able to focus on delivering the best possible results for our clients on everything from energy efficiency and demand-side management to renewable generation and decarbonisation."
Mr Dyer said Contact had committed to Simply Energy continuing as a stand-alone company "so we can stay nimble, stay focused and keep innovating fast".
"We’re proud about what we’ve achieved so far with the team, and we’re excited about this next chapter.”
In June 2019, Contact acquired a 49.96% shareholding in Simply Energy for $10.7million.
The price for the remaining shares in Simply Energy (50.04%) were at a fixed price of $7.3million to be paid over the financial years in 2022 and 2023, and a potential performance-based payment linked to decarbonisation and earnings targets.
