The country’s largest fuel retailer is investing in an electricity start-up and has tapped the legal expertise of a top firm.
MinterEllisonRuddWatts was the law firm of choice for Z Energy, which will purchase 70% of Flick Electric for $46m. Z Energy will pay $15.6m for newly issued Flick Electric shares equivalent to a 22% stake. Z Energy will also purchase $30.4m worth of existing Flick Electric shares.
Corporate partners Paul Foley, John Conlan, and Rodney Craig advised on the transaction.
Flick Electric, a relatively new company in the energy industry, was the first electricity retailer to offer customers time-of-use pricing based on wholesale electricity prices.
“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,” Foley said. “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.”