Obayashi completes 50% acquisition of NZ-based Eastland Generation
Te Ahi O Maui geothermal power plant by Eastland Group, New Zealand (source: Eastland Group)
Carlo Cariaga
3 May 2024
NZ-based renewable energy company Eastland Generation has announced the successful sale of 50% of the company to Japanese Obayashi Corporation.
New Zealand-based renewable energy company Eastland Generation has announced the successful completion of their transaction with Japanese construction firm Obayashi Corporation (Obayashi). With this, Obayashi has acquired a 50% stake Eastland Generation, cementing a strong partnership that aims to drive sustainable energy and innovation.
In mid 2023, Eastland Generation announced a strategic capital raise to help fund the expansion of its renewable generation portfolio in New Zealand. Additionally, it sought to tap into the expertise and capabilities necessary to expedite these projects and capitalize on other identified opportunities.
Before the end of 2023, Eastland Generation announced a successful capital raise round by the sale of the company’s 50% interest to Obayashi. For their part, Obayashi is looking forward to this new chapter and are excited about this partnership as it aligns with their vision. The partnership will bring together Eastland Generation’s and Obayashi’s complementary expertise to drive sustainable energy development in New Zealand and beyond.
“Eastland Generation has a strategy to continue to grow its renewable generation portfolio. It needed capital to continue to grow and, ideally, a partner with a strong and complementary capability set – Obayashi provides both,” said Matt Todd, CEO of Eastland Group. “The lead up to the capital raise has seen sustained growth with the generation assets having a value of $4 million in 2010, through to 50% being sold to Obayashi at an enterprise value in excess of $500 million in 2024.”
Eastland Generation Chief Executive Officer Alice Pettigrew added, “Today signifies a big leap forward for our business and with Obayashi’s experience and global reach, we are well-positioned to unlock new opportunities and drive transformative change in the energy sector. Together, we will leverage our collective strengths to expand our renewable energy portfolio and contribute to New Zealand’s carbon reduction targets.”
“We are also in the process of developing and consenting additional renewable generation capacity. We are proactively enhancing our capacity of renewable energy generation and aim to increase it to more than 100 MW by 2027.”
Eastland Generation are currently in the process of constructing TOPP2, a 49MW geothermal power station in Kawerau, which is expected to be commissioned in late 2025.
Source: Email correspondence
