A109 Light Utility Helicopter flight with mayor Gisborne City from the air in November 2023.
A109 Light Utility Helicopter flight with mayor Gisborne City from the air in November 2023.
Re: Open and transparent? July 15 letter.
Trustees received comprehensive independent advice from Northington Partners to assess the recommendation from Eastland Group’s board of directors around the capital raise and short-term investment from Trust Tairāwhiti. Our advisers agreed it was the best option for the trust to achieve its aspirationsfor better investment diversity, improved liquidity, and the company’s growth strategy.
Following the sale of Eastland Network, the company repaid the trust $30m in capital notes and a $50m special dividend. Trustees agreed to reinvest $30m to support the TOPP2 project. The capital notes will earn interest for the trust and be repaid upon the successful conclusion of the capital raise.
Following our independent due diligence process, the trust is confident this is an attractive opportunity for a range of high-quality investors.
Eastland Generation’s geothermal assets are located outside of the region, but they have 5MW of hydro within Tairāwhiti, another 5MW will come online when the new solar farm is commissioned this spring, and there are other regional solar and wind projects in the pipeline. The profits come back into the region through dividends to the trust. This short-term investment will not limit the trust from making other regional economic and community investments.
The 2023/24 Statement of Intent outlines the triennial Eastland Group review, including growth opportunities and capital structure. The trust separately informed the council of these initiatives.
Eastland Group operates as a commercial entity, and trustees are mindful of the sensitivities around that. The information was publicly shared as soon as it was appropriate.
As noted by The Gisborne Herald, the company has previously gone to market seeking an equity partner. During the network sale engagement last year, it was widely communicated the company was looking to invest in renewable energy projects.
