King Country Energy’s major shareholder, Contact Energy, has made a non-binding indicative offer to King Country Trust (“the Trust”) to purchase the remaining 24.98% of King Country Energy for ~$47m (the “Proposed Transaction”).
Through its wholly owned holding subsidiary, King Country Energy Holdings, Contact currently holds ~75% of the shares in King Country Energy and operates and maintains King Country Energy’s five hydropower stations. Four are located within the King Country region, one in the Horowhenua region, with total installed capacity of ~53 MW and average annual generation of ~190 GWh.
The Trust has elected to undertake a Special Ownership Review and public consultation in accordance with the terms of its Trust Deed, to inform its decision whether to accept Contact’s offer. This consultation is expected to commence shortly and run for around a month.
Following public consultation, if the parties elect to proceed with the Proposed Transaction, a sale and purchase agreement would be expected to be signed and completed in the second quarter of calendar year 2026.
King Country Energy Director and Contact Hydro Development Manager, Todd Mead, says Contact would take full ownership of King Country Energy’s stations if the Proposed Transaction proceeded.
“We’re committed to remaining active in the local community, strengthening relationships and partnerships with local iwi, and continuing to invest in King Country Energy assets, ensuring they operate reliably and safely into the future,” says Mr Mead.
The Proposed Transaction is expected to be funded via the issue of new shares in Contact to the Trust.
