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GFG Alliance demerges SIMEC ZEN Energy
Pinsent Masons has advised GFG Alliance on the demerger of SIMEC ZEN Energy.
Tony Zhang
Firm: Pinsent Masons (GFG Alliance); Kain Lawyers (Zen Power Holdings)
Deal: Multinational law firm Pinsent Masons has advised Sanjeev Gupta’s GFG Alliance on the demerger of SIMEC ZEN Energy Group, GFG’s renewable energy development and retail businesses in Australia.
Area: Energy and resources.
Key players: Headed by Ewan Robertson, the Pinsent Masons team acting on the transaction was led by senior associate Lucy Carter with assistance from lawyer Katie Murray and graduate lawyer Abigail Gedge in M&A matters.
Partner Jim Hunwick and lawyer Jesse McNaughton advised on financing matters and partner Katie Williams and associate Patrick Williams on employment aspects.
Deal Significance: The sale will see ZEN Energy retain the electricity and energy services business undertaken during the merger.
That includes significant energy supply contracts with the South Australian government, the University of Adelaide and a number of industrial clients.
“We are delighted to have advised GFG Alliance on this strategically important deal, which will allow GFG to focus on the strength of its significant energy development business,” Mr Robertson said on the deal.
“Given the intertwined nature of the businesses and the financial support provided from various sources, the demerger was ultimately a complex process. Working closely with the GFG team, we were able to quickly draw on the specialist finance and energy markets experience required to reach a successful and beneficial outcome for all parties involved.”
The demerger of SIMEC ZEN Energy Group will see the creation of two separate renewable energy businesses comprising SIMEC Energy Australia and ZEN Energy.
GFG Alliance will continue to own and operate the energy development business, SIMEC Energy Australia, whilst the energy retail business, ZEN Energy, has been split off and sold to the minority shareholders led by Ross Garnaut and Raymond Spencer, the owners of Sunshot Energy.
GFG Alliance is a collection of global businesses and investments owned by well-known industrialist Mr Gupta and his family. GFG Alliance employs 35,000 people across 30 countries and has revenues of US$20 billion.
