TECT's Trustpower Shareholding

Background

Prior to 1993 residents of Tauranga and Western Bay of Plenty purchased their electricity through the Tauranga Electric Power Board (TEPB). Following the Government’s 1993 restructuring of the New Zealand electricity sector, Trustpower Limited was formed and began developing a generation and retailing business.

The Tauranga Energy Consumer Trust (TECT) was established under a trust deed in 1993 in line with an agreed establishment plan. Under the plan 84 million shares were issued in the newly formed Trustpower. 49% were allocated to individual consumers (previous customers of TEPB) and 50% of the shares were allocated to TECT to establish the Trust.

The restructuring of the electricity sector saw more electricity retailers enter the market. TECT beneficiaries (consumers) were confirmed as those that held a Trustpower power account in the Western BOP. Western BOP residents who chose to purchase their power from another retailer were now no longer beneficiaries of TECT.

In 1999, further market reforms required the company to choose between generation/retailing and owning a distribution network. The decision was made to focus on generation/retailing and exit distribution.

TECT subsequently acquired additional shares through a share split and also additional purchase of shares bringing its total shareholding to approximately 103m shares.

In early 2015 the Trustees resolved to sell 20m of the Trust’s shares in Trustpower and invest the proceeds in a diversified portfolio with the aim of diversifying the asset base of the TECT Group. The sale of the shares yielded proceeds of approximately $155m.

In 2016, Trustpower underwent a demerger that created Tilt Renewables Limited. Existing Trustpower shareholders including TECT were issued one share in each of the new entities for each Trustpower share that they held. In 2018, TECT liquidated its holding of Tilt Renewables shares, yielding net proceeds on the order of $190 million. These funds have been reinvested through the Diversified Portfolio.

On 1 May 2022, Trustpower sold their mass market retail business and changed their name to Manawa Energy Limited.

About Manawa Energy

Manawa Energy is a publicly owned company, listed on the New Zealand Stock Exchange (NZX). It is New Zealand’s largest independent electricity generator and renewables developer, representing about five per cent of the country’s existing generation capacity.

Manawa Energy Limited came into effect on 1 May 2022. Prior to this, the company traded as Trustpower Limited. The Trustpower name and retail brand was acquired by a competitor, which is independent of Manawa Energy Limited.

Currently, Manawa Energy operate 26 power schemes from the Bay of Plenty in the north, to Otago in the south. These existing generation schemes represent around 5% of New Zealand’s generation capacity, and Manawa Energy have a focus on exploring opportunities and partnerships for the development of new renewable generation, including wind and solar.