The sale of 50 per cent of Eastland Generation for more than $250 million to Obayashi Corporation is one factor leading to the restructuring of Eastland Group and the departure of long-serving chief executive Matt Todd.
The sale of 50 per cent of Eastland Generation for more than $250 million to Obayashi Corporation is one factor leading to the restructuring of Eastland Group and the departure of long-serving chief executive Matt Todd.
Eastland Group’s head office will be reshaped into a holding company following the sale of Eastland Network and the sale of 50 per cent of Eastland Generation.
The restructuring will result in the departure of Eastland Group chief executive Matt Todd, who has been in the role since 2003. The 2023 sale of Eastland Network for $260 million and the following year’s 50 per cent sale of Eastland Generation to Obayashi Corporation for more than $250m has led to the move to “reshape”.
In recent months, Eastland Port and Eastland Generation have operated under independent boards.
Eastland Port includes Gisborne Airport and other regional infrastructure investments.
Eastland Group has historically provided these entities with a range of corporate services, which are no longer required.
Todd will support the transition to the new operating model before his departure in July.
Trust Tairāwhiti chairman David Battin acknowledged Todd for showing strong leadership, an innovative approach and for creating shareholder value over the past two decades.
“Eastland Group is one of the region’s greatest success stories, and trustees are incredibly proud of it.
“Under Matt’s guidance, the Eastland Group team built the company value to over $1 billion, resulting in $182 million in dividends back to the community through Trust Tairāwhiti,” he said.
“We would also like to acknowledge the exceptional team at Eastland Group head office, who have all played an important role in the company’s successes, as have our Eastland Group directors.”
Eastland Group chair Matanuku Mahuika also recognised the contributions of Todd and Eastland Group staff.
“It is important to thank Matt, and all the Eastland staff, for their individual and collective contributions to the company and the wider community.
“This is a business that has never stood still and has continued to grow and evolve over time.
“This has resulted in many successes, and it has generated a lot of value for our community.”
Matt Todd, chief executive of Eastland Group since 2003, is leaving the organisation in July after a restructure.
Todd said it had been a privilege to lead the company.
“After two decades in the role, it is a natural juncture for me to move on to pursue other personal and professional aspirations.
“The challenge that has kept me here over the years has always been to create and execute strategies to grow great businesses.
“This has required the development of a strong and capable management team, which I have been proud to lead.
“I have every confidence in them to steward the businesses into the future.”
Trustees have appointed current Eastland Group directors Matanuku Mahuika and Jon Nichols to the Eastland Generation joint venture board, alongside two Obayashi directors.
Todd has no immediate plans for the future but told the Gisborne Herald he was unlikely to take up another executive role.
“We want a bit more time, personally.
“I would look to do some consultancy work, maybe some board work.
“I don’t want to rush into it. We will give ourselves some time and think about it.
A recruitment process is now under way for the board of Eastland Port (Regional Infrastructure).
Trustees have appointed current Eastland Group directors Wendie Harvey and Hamish Bell to the board, with another two to be recruited through a public process.
The new holding company will be responsible for monitoring and driving the performance of Eastland Port and Eastland Generation, and reporting through to Trust Tairāwhiti.
It will also work alongside the trust to assess future commercial investment opportunities.
Eastland Generation and Obayashi complete transaction
Eastland Generation completed its $250m transaction with Obayashi Corporation this week, with the Japanese company acquiring a 50 per cent stake in the renewable energy company.
The deal was initiated by Eastland Group and its owner Trust Tairāwhiti last year as they sought to raise capital for a “significant pipeline” of renewable generation projects.
Eastland Group chief executive Matt Todd said the company “needed capital to continue to grow and, ideally, a partner with a strong and complementary capability set — Obayashi provides both”.
“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 per cent being sold to Obayashi at an enterprise value in excess of $500 million in 2024.”
A statement said Obayashi was excited about the partnership, “as it aligns perfectly with their vision and will bring together Eastland Generation’s and Obayashi’s complementary expertise to drive sustainable energy development in New Zealand and beyond”.
Eastland Generation chief executive Alice Pettigrew said the transaction signified a big leap forward for the business.
“We are well-positioned to unlock new opportunities and drive transformative change in the energy sector,” she said.
“Together, we will leverage our collective strengths to expand our renewable energy portfolio and contribute to New Zealand’s carbon reduction targets.”
The company is in the process of constructing a 49MW geothermal power station in Kawerau, which is expected to be commissioned in late 2025, and is also 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 100MW by 2027,” said Pettigrew.
“This partnership marks a pivotal moment for Aotearoa and will continue to lead the transition towards a cleaner, more sustainable future.”
