In case you missed it: News bites for the week.
Jason Boyes.
NZX-listed Infratil is buying a further 4.9% stake in Contact Energy, taking its stake to 14.3%.
The shares are being acquired from TECT Holdings, formerly known as Tauranga Energy Consumer Trust, for $437.7 million, or $8.95 a share, a small discount on Friday’s closing price of $9.05.
Infratil said it would fund the purchase partly through the issue of $218.8m of new shares to TECT at $12.43, equal to Infratil’s closing price on Friday, and partly through existing debt facilities.
Chief executive Jason Boyes said TECT’s decision to diversify created an opportunity for Infratil to increase its investment in Contact.
“Part-funding with new shares efficiently preserves our flexibility for future growth, while increasing ownership of a strong cashflow-generating business,” he said.
NZME has appointed a senior manager from The Warehouse Group as its new chief financial officer.
Jo Hempstead will step into the role soon to be vacated by David Mackrell, who announced in July that he would be moving to Sky TV to serve as CFO.
Hempstead currently serves as finance general manager at The Warehouse Group, where she reports directly to the chief financial officer. She has more than two decades of experience in finance, working primarily across the retail sector.
“Jo’s strategic mindset and passion for innovation will be instrumental as we continue to grow our digital platforms and deliver value to shareholders,” NZME chief executive Michael Boggs said.
Hempstead said she’s excited to join the company at a pivotal time.
“The company’s commitment to innovation, trusted journalism, and commercial excellence strongly aligns with my values. I look forward to working with the team to support NZME’s strategic ambitions.”
Hempstead will begin her role on January 27.
ANZ Bank has disclosed a resolution put forward by shareholders for its annual meeting on December 18 relating to its policy on climate change.
Duncan Webb.
Dairy co-op Fonterra says it will invest $75 million to expand butter production at its Clandeboye plant, as part of $1 billion of investment planned over the next three to four years. “We’ve said that through focused execution of strategy, we are targeting our earnings to be back at FY25 levels by FY28 if the Mainland Group business is divested,” said chief executive Miles Hurrell. “This investment supports that goal by increasing our production of a high-value product and improving our product mix by adding value to milkfat.” The expansion will create 16 new jobs at the site. Construction is due to start in December, and production is due to begin in April 2027.
Christopher Luxon.
KiwiSaaS, the software-as-a-service networking group established by Callaghan Innovation and NZ Trade and Enterprise in 2021, has been relaunched under a new industry-led model. Government funding for the community was pulled in mid-2024, amid criticism that the move was short-sighted given the sizeable potential returns from supporting the local software startup ecosystem. KiwiSaas is now part of not-for-profit membership organisation NZTech Group, which includes 15 other technology sector communities, and is transitioning to a "sustainable, community-run network". Its founding partners are Stripe, Movac, NZX, and Atlas Digital. It has 21 founding members which employ over 7000 people locally and generate over $6 billion in global revenue. The refreshed platform's membership is open to SaaS companies nationwide and launches with "7 Weeks of SaaSmas", a series of practical workshops bringing together founders, leaders and teams across the country.
Legislation paving the way for granny flats up to 70sqm to be erected without a building consent has gone through Parliament. RMA Reform and Housing Minister Chris Bishop said, alongside the change to the Building Act, the Coalition Government would put in place by the end of the year an updated National Direction under the RMA, removing the need for a resource consent for granny flats. “These simple dwellings have the potential to be part of the solution for providing families with more housing options,” he said. Associate Finance Minister Shane Jones said he had been working on the changes for two decades, and he was delighted the NZ First-National Party coalition agreement had delivered a commonsense housing solution. To qualify for the exemption from building and resource consents, the granny flats have to be simple in design, meet the Building Code, and be built by authorised building professionals. Homeowners will also have to notify their local council before going ahead.
Todd McClay.
European Union Trade Commissioner Maroš Šefčovič arrives in New Zealand on Friday for the inaugural New Zealand-EU trade committee meeting. First, Šefčovič attends the EU-NZ Business Summit in Auckland before heading to Queenstown for the trade committee meeting on Saturday. Trade Minister Todd McClay said the business summit would bring together more than 400 businesses across a range of sectors. “This summit will open doors for trade, creating opportunities for business growth and investment and to reach our goal of doubling export value in 10 years,” McClay said. He said the meeting in Queenstown was focused on ensuring New Zealand and the EU made the most of their free trade agreement. “We’re committed to unlocking the full potential of this agreement to boost trade, investment and partnership so businesses across New Zealand and Europe can flourish."
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