The transaction is said to be a significant renewable energy equity investment involving strategic Māori capital
Simpson Grierson has helped Māori-led consortium Tōtara Energy LP to acquire a 30% stake in Pioneer Energy Group for over $50m.
The transaction is said to be among the most significant renewable energy equity investments involving strategic Māori capital, according to the firm. Lead partner Simon Vannini said that the complex deal "brings together diverse Māori and impact investors in pursuit of a shared vision for a clean energy future in Aotearoa".
"We think this transaction represents a watershed moment for Māori investment in New Zealand's renewable energy sector. The scale and strategic significance of this investment demonstrates the growing sophistication and ambition of Māori capital in critical infrastructure sectors", Vannini explained.
Tōtara Energy LP comprises Māori trusts Tauhara North No.2 Trust (cornerstone investor), Te Ngakinga o Whanganui Investment Trust, Tupu Angitu, Parininihi ki Waitōtara Incorporation, Ngāti Kahungunu ki Wairarapa Tāmaki-nui-a-Rua Investment Trust, and Ngāti Awa Asset Holdings as well as impact investors Soul Capital, Purpose Capital and community trust Trust Horizon. The consortium's bid for the Pioneer Energy stake beat out those of at least three global investors.
With the acquisition, Tōtara Energy LP takes an interest in Pioneer Energy's comprehensive renewable portfolio, which consists of hydroelectric, wind, and bioenergy assets as well as retail electricity brand Pulse Energy. Simpson Grierson said that the deal "represents a major milestone for the Māori economy, marking a strategic shift into critical infrastructure investments".
The influx of capital will be allocated for Pioneer Group's plan to expand into renewable and waste-to-energy projects. Central Lakes Trust holds on to a controlling stake, retaining local ownership and oversight.
Vannini worked on the deal with a Simpson Grierson team comprising partner Josh Cairns, senior associate Zelda Gower, senior solicitor Grace Dimond and solicitors Latesha Metzler and Zac Cran.
Pioneer Energy was represented by a team from Buddle Findlay.
