Infratil, together with its co-investors the NZ Super Fund and the Longroad Energy management team, announce that MEAG, acting as the asset management arm for entities of Munich Re, has agreed to invest US$300 million to acquire a 12% stake in Longroad Energy (‘Longroad’), the US renewable energy company. The transaction implies a pre-money valuation for Longroad common equity of US$2,000 million. Infratil and the NZ Super Fund will each also invest a further US$100 million and retain a ~37% stake. The balance of ~14% is owned by Longroad management. MEAG’s investment is subject to certain conditions, primarily customary US regulatory approvals from the Federal Energy Regulatory Commission and the Committee on Foreign Investment in the United States. Completion of the transaction is expected in the last quarter of the calendar year.
In early 2022, Longroad initiated a process to seek a minority investor to join in raising an additional US$500 million of capital to support increasing its renewable development activity and scale. The additional capital will primarily be used to fund Longroad Energy’s near-term development pipeline, which includes 4.5GW of development projects to begin construction over the next 3 years. The business is planning to reach financial close on ~1,000MW’s of projects before year end, including Sun Streams 3, the 500MW solar and storage project in Maricopa County, Arizona.
Infratil chief executive Jason Boyes said that the pre-money valuation of Infratil’s stake at completion implied by the transaction of US$800 million was significantly higher than the independent valuation received on 31 March 2022 of US$220 million, and listed market consensus. It was also in line with the enterprise valuation multiple achieved for the sale of Tilt Renewables’ Australian business in 2021, at 40 times Longroad’s FY2023E proportionate EBITDA of ~US$83 million[1].
“Infratil is extremely happy with this outcome. We remain very optimistic about the opportunities and outlook for Longroad and are pleased to be increasing our investment as part of this transaction. Longroad is well-positioned in a key geography, with high-quality operating assets, built-in growth through its development portfolio, and a proven team. The new investment from a leading global infrastructure investor in MEAG is a strong endorsement of the business and the sector, and we look forward to working with them.”
“This transaction, alongside the sale of Vodafone New Zealand’s passive mobile towers announced in July, continues the trend of private market valuations of infrastructure assets for like-minded, long-term investors exceeding listed market consensus.”
NZ Super Fund Head of External Investments and Partnerships Del Hart said “Longroad has been one of the NZ Super Fund’s most successful investments and, in line with our long-term, partnership approach to infrastructure development, we are pleased to both welcome MEAG as a co-investor and contribute more capital ourselves. It has been exciting to see Longroad grow since we first invested in 2016 and we look forward to seeing it continue to deliver both strong financial returns and positive environmental and social outcomes.”
Longroad CEO Paul Gaynor said “The additional capital will allow Longroad to maximise its competitive position in what remains one of the most attractive markets in the world for renewable energy investment. We expect to benefit from improved purchasing power, providing greater optionality and value-maximisation opportunities, reliable cash flows from a growing operating base to support the larger pipeline and downside protection.”
Dr Alexander Poll, MEAG’s Senior Investment Manager responsible for U.S. infrastructure investments, said “This investment is a significant step to further increase the US renewable portfolio for Munich Re. Given Munich Re's strong position in the US insurance market, we are interested in further investing in the United States.”
Martin Kaufmann, Senior Investment Manager MEAG U.S. infrastructure investments, said “This investment makes an important contribution to Munich Re’s net-zero climate commitment under the Net-Zero Asset Owner Alliance (AOA), which Munich Re joined in 2020. We are also pleased to have teamed up with professional partners on this investment to build a successful long-term relationship.”
Morrison & Co’s Global Head of Energy Vimal Vallabh added “Longroad represents the second of our renewables businesses to reach a level of maturity that has been given strong endorsement by the market, after the sale of the Australasian-focused renewables business, Tilt Renewables. We continue to increase our exposure to this attractive sector through our ongoing interest in Longroad and through the rapid expansion we are experiencing in Europe through Galileo and our newest platform Gurīn Energy, which is focused on the Asian market.”
Estimated impact on FY2023 International Portfolio Annual Incentive Fee
Infratil’s investment in Longroad is part of the International Portfolio Annual Incentive Fee (‘Annual Incentive Fee’) assessment each year. To calculate the Annual Incentive Fee, the valuation of Infratil’s investment in Longroad includes an estimate of the tax payable and sale costs if Infratil were to realise the investment.
Based on an updated independent valuation as at 30 June 2022, which took into account the proposed transaction and capital raise, Infratil’s 40% stake in Longroad was valued at US$798 million (NZ$1,284 million), or US$614 million (NZ$987 million) post-estimated tax and sale costs, which results in an estimated Annual Incentive Fee in relation to Longroad at 31 March 2023 of NZ$103 million.
Infratil notes that the actual Annual Incentive Fee at 31 March 2023 will be determined based on independent valuations of each of the relevant investments as at that date. If an Annual Incentive Fee is ultimately determined to be payable at 31 March 2023, the fee will be payable in three equal tranches over the period to 31 March 2025, with the latter two tranches only being payable if the total valuation of the relevant investments as at 31 March 2024 and 31 March 2025 respectively is no less than the total valuation determined as at 31 March 2023.
Summary: Valuation of Infratil’s interest in Longroad Energy
31 March 2022 (40% interest) US$220m (NZ$315m)
(US$158.6m post-estimated tax and sale costs)
30 June 2022 (40% interest) US$798m (NZ$1,284m)
(US$613.6m (NZ$987 million) post-estimated tax and sale costs)
At Closing (37.1% interest, post-money) US$927m (NZ$1,426m)
At completion of the transaction, Infratil will have invested a net US$112 million in Longroad since 2016, and achieved an IRR of 59% p.a. based on the US$800 million pre-money valuation of its stake implied by this transaction (post-estimated performance fees and tax and sale costs payable if Infratil realised its stake).
Source: https://infratil.com/
The latest investment values the Auckland technology company at $90 million and the investment funds will help its plan to transform the global photonics test and measurement industry.
Auckland, New Zealand, July 22 2022 - Auckland-based Quantifi Photonics, an emerging leader in the global photonics test and measurement market, announced today that it has secured NZ $25 million in a fully-subscribed Series C capital raise.
Intel Capital, the venture capital arm of Intel Corporation, led the round which was supported by existing New Zealand investors Pacific Channel, Nuance Connected Capital, Simplicity, K1W1, NZ Growth Capital Partners and UniServices. Early investor Punakaiki Fund remains the largest shareholder.
Intel Capital will add a new non-executive director to the Quantifi Photonics board.
“Intel Capital’s investment will help us carry out our strategy and seize the market for the high-value test instruments required to support the rapidly growing transceiver market, which is projected to exceed US $14B by the year 2026,” said Dr. Andy Stevens, CEO and co-founder of Quantifi Photonics. “We are also grateful to our existing investors who participated in the round. With help from NZTE, Callaghan Innovation, and the hard work of our passionate staff, we’ve made incredible progress in the last few years.”
Following an over-subscribed Series B round in 2021, Quantifi Photonics increased annual sales orders by over 70% and established a dedicated research and development centre in Thailand following the acquisition of SmarTest Technologies. The company is now fast-tracking the development of new test instruments designed for the latest optical communications technologies designed to power 5G and 6G communication networks.
“Silicon photonics is a key technique in the future of the semiconductor and telecommunications industries, especially with the increasing bandwidth requirements for data center and 5G/6G applications,” said Sean Doyle, Managing Director at Intel Capital. “The Quantifi Photonics team has the potential to supply critical test and measurement solutions to the market at large.”
Quantifi Photonics is headquartered in Auckland, New Zealand with wholly-owned subsidiaries in the USA and Thailand. The company will be growing its New Zealand R&D and manufacturing teams, and investing in overseas sales and customer support teams to capitalise on the significant growth in optical communication networks around the world.
Dr. Andy Stevens, CEO Quantifi Photonics a.stevens@quantifiphotonics.com
+64 212 436 191
Quantifi Photonics is on a mission to transform the world of photonics test and measurement. From their New Zealand headquarters, the company develops and manufactures benchtop and modular test instruments and customized test solutions. They are a critical supplier to multinational technology companies and world-leading research organizations and work with customers to solve complex challenges with experience and innovation. Discover more at www.quantifiphotonics.com.
As part of the Government’s Immigration Rebalance strategy, changes to New Zealand’s investor visa settings will be made to attract experienced, high-value investors bringing growth opportunities to domestic businesses, Economic and Regional Development Minister Stuart Nash and Immigration Minister Michael Wood announced today.
“We have so many fantastic businesses in New Zealand that are making a real name for themselves in the global marketplace. Our Government has a goal to support these businesses to grow into even more successful global brands, and updating our investor visa settings is a key part of our strategy to attract high-value investors,” Stuart Nash said.
“This is part of our Immigration Rebalance strategy, which aims to attract high-skilled migrants, and aligns with our goal to build a more productive, competitive and sustainable, economy. The new visa settings will attract active and high-value migrants who will bring their international expertise to help New Zealand businesses to grow, which increases local employment and directly benefits the economy.
“The new Active Investor Plus visa will replace the old investment visa categories, which although successful in attracting a large amount of funds over past decade – over $12b –often resulted in passive investment in shares and bonds rather than directly into New Zealand companies, meaning a missed opportunity to attract more active investors who can deliver real benefits to our economy over a long period of time.
“We want to encourage active investment into New Zealand, which generates more high-skilled jobs and economic growth compared to passive investment. This new visa category will also leverage the skills, experience and networks of migrants who will bring their access to global networks and global markets to help Kiwi companies grow faster and smarter.
“Overall, the visa changes are a win-win for New Zealand and migrant investors. Investors secure an opportunity to invest in smart and innovative New Zealand businesses that have the potential to be globally successful, and Kiwi businesses gain valuable skills, connections, and capital. This will make New Zealand more competitive in the international marketplace and take our businesses to the next level” Stuart Nash said.
“The new visa category will help to attract investors that will remain in New Zealand for the long term, bringing their skills and experience to increase our productivity and competitiveness, supporting our transition to a high wage, productive economy,” Michael Wood said.
“Applicants who make acceptable direct investments, among other requirements, will be eligible for the new visa with a $5 million minimum investment and receive the highest rating which is a lower minimum amount than those who choose more indirect investments. The minimum amount required for indirect investments will be $15 million.
“We’re also improving the flexibility for the investor by allowing them to invest over a three-year period and maintain their investments up to the end of a fourth year. Investors will need to spend at least 117 days, or around a month a year, in New Zealand over the four-year investment period. This is increased from 88 days in the previous category in order to ensure that investors are actively getting hands on with local companies to help them grow.
“Being in New Zealand will provide more opportunities to become involved in the businesses they’ve invested in, further sharing their expertise and connections. Spending time here also increases the likelihood of further active investment. The changes make us competitive with Australia, which has a similar investor migrant setting,” Michael Wood said.
The new Active Investor Plus visa will open on 19 September 2022. Applications under the Investor 1 and Investor 2 visas will no longer be accepted after 27 July 2022. All applications in the current pipeline will continue to be processed by Immigration New Zealand.
Source: https://www.beehive.govt.nz/
The brand, owned by NASDAQ-listed RAVE Restaurant Group, has signed an international development agreement with the director of Al Forno Pizzeria Italian Restaurant in Auckland, Ginny Singh.
The deal will see Singh become the principal master licensee and development partner for Pizza Inn in New Zealand. Prior to becoming a director of Al Forno, Singh had been a restaurant general manager at both KFC and Burger King.
Under the agreement, Pizza Inn will join forces with Singh to build ten Pizza Inn restaurants, which are a pizza buffet concept like the Pizza Hutt of old, with the first expected to open in Auckland later this year.
QSR restaurants have had a challenging time under the pandemic, with those not offering delivery suffering the most, while pizza delivery chains like Domino’s and New Zealand-founded Hell performed better.
However, Singh said his company, GJ Restaurants, was “eager” to bring the new chain to New Zealand.
“Hospitality is recovering and this is a great time to bring an iconic American brand which aligns with our passion for authentic, high-quality pizza,” Singh said.
Dallas-headquartered RAVE has Pizza Inn restaurants in the United Arab Emirates, Kuwait, Oman, Saudi Arabia, Palestine and Honduras.
“Our new fiscal year is off to a great start with a net increase of two Pizza Inn restaurants in the US and our opportunity to be a leading pizza brand in New Zealand,” RAVE president and chief executive, Brandon Solano, said.
“Our franchisees all share a common dedication to creating a high-quality product and dining experience with our house made dough and 100% house-shredded whole-milk mozzarella cheese. Ginny will bring that same commitment to pizza lovers in New Zealand.”
RAVE owns, franchises, licenses and supplies Pizza Inn and fast-casual pizza brand Pie Five Pizza restaurants operating in the US and internationally.
Source: https://www.foodticker.co.nz/
Volpara Health Technologies (“Volpara,” “the Group,” or “the Company”; ASX:VHT), a global leader in software for the early detection of breast cancer, today announced that it has signed a contract with Radnet Management, Inc. (“RadNet”), for an initial contract period of 42 months, with the mutual option to extend.
RadNet, based in Los Angeles, California, is the largest provider of outpatient imaging services in the United States. RadNet has 9,000 employees and operates across 353 imaging centres in seven states.
The volume-based contract sees RadNet implementing Volpara® Analytics™ and Volpara® Risk Pathways™ software throughout its organisation. Volpara Analytics’s artificial intelligence will consistently manage mammography quality across RadNet’s 350+ sites. Volpara Risk Pathways provides risk-based screening to ensure RadNet patients have access to essential imaging and genetic testing. Planning for the implementation has begun, with go-live projected in 2023. Management expects that revenue generated under the agreement will be material to the Company.
Volpara Group CEO Teri Thomas said: “Volpara is pleased to partner with such a large and wellrespected organisation as RadNet. Together we will save even more families from cancer. This is a broader partnership than a simple software purchase. We look forward to a deep engagement with RadNet as part of our focus on industry impacts and customer success of ‘elephant-sized’ industry leaders.”
Source: https://www.volparahealth.com/
Foreign Affairs Minister Nanaia Mahuta today announced the appointment of Bede Corry as New Zealand’s next Ambassador to the United States.
“Mr Corry is one of Aotearoa New Zealand’s most senior diplomats. His appointment reflects the importance New Zealand places on our engagement with the United States,” Nanaia Mahuta said.
“Last month the Prime Minister and President Biden met at the White House to reaffirm our shared commitment to work together, and with others, in pursuit of peace and stability and in defence of the international rules-based order. The leaders released a statement that mapped out ways to further advance our 21st-Century Partnership.
“The United States is a critically important partner in the Pacific. It is a Dialogue Partner for the Pacific Islands Forum, and we have pledged to work together to build resilience to climate change in the region.
“This year marks 80 years of formal diplomatic relations with the US and the anniversary of our first envoy, Walter Nash, presenting his credentials to President Roosevelt. The relationship has benefitted both countries and our region,” Nanaia Mahuta said.
Bede Corry is currently New Zealand’s High Commissioner to London. He previously served on the Ministry’s Senior Leadership Team for six years, as Deputy Chief Executive Policy, and as Deputy Secretary for the Australia, Pacific, Middle East, Africa and Europe Group.
Mr Corry was also New Zealand’s Ambassador to Thailand and has served in Canberra, Washington, and London, and as a Deputy Secretary in the Ministry of Defence.
Mr Corry will take up his role in September 2022.
A new initiative for more effective and efficient cooperation in support of Pacific Island priorities
The Pacific Islands region is home to nearly a fifth of the Earth’s surface and many of its most urgent challenges, from the climate crisis to the COVID-19 pandemic to growing pressure on the rules-based free and open international order. It was in this context that the Pacific Islands Forum, the premier driver of regional action, committed to organize its members “as one collective if we are to address our increasingly common challenges.” As our countries—Australia, Japan, New Zealand, the United Kingdom, and the United States—continue to support prosperity, resilience, and security in the Pacific, we too must harness our collective strength through closer cooperation. To that end, our governments dispatched high-level officials to Washington, D.C. on June 23 and 24 for consultations with Pacific Heads of Mission and other partners, including France, as well as the European Union in its observing capacity. These meetings followed discussions with Pacific partners, including with the Pacific Islands Forum Secretariat; they remain ongoing, including with other partners engaged in the region. Today, our five countries launched an inclusive, informal mechanism to support Pacific priorities more effectively and efficiently: thePartners in the Blue Pacific (PBP). This new initiative builds on our longstanding commitment to the region. Australia and New Zealand are of the region and members of the Pacific Islands Forum; Japan, the United Kingdom, and the United States are founding Dialogue Partners. Our countries maintain close people-to-people ties to and are longstanding development partners with the Pacific Islands, reflected in our combined $2.1 billion in development assistance for the region. We are united in our shared determination to support a region that benefits the peoples of the Pacific. We are also united in how we realize this vision—according to principles of Pacific regionalism, sovereignty, transparency, accountability, and most of all, led and guided by the Pacific Islands. With these principles at its core, the Partners in the Blue Pacific aims to:
At every stage, we will be led and guided by the Pacific Islands. We will seek Pacific guidance on the PBP’s selection of its lines of effort and its flagship projects. In meetings in Washington, including at Blair House, our governments and Pacific Heads of Mission discussed diverse areas in which to deepen cooperation, including the climate crisis, connectivity and transportation, maritime security and protection, health, prosperity, and education. We commit to continuing to engage with Pacific governments as well as with Pacific-led regional institutions, particularly the Pacific Islands Forum; we will align our work with outcomes from the upcoming Pacific Islands Forum Leaders meeting in Suva, Fiji. Later this year the United States intends to invite Partner countries’ foreign ministers to convene and review our progress. Source: https://www.whitehouse.gov/
Nelson Eddyline Brewery has called in a carbon capture expert from the US to address both a shortage of CO2 plaguing New Zealand as well as improving its sustainability credentials.
The family-owned business is investing “hundreds of thousands” of dollars to install the technology developed by Earthly Labs, which will allow it to capture and reuse its carbon dioxide CO2 emissions.
It will be the first craft brewer in New Zealand to import the system, which is more commonly used in the US.
Although the original driver was to minimise Eddyline’s carbon footprint, the closure of the Marsden Point refinery in March and subsequent squeeze on domestic CO2 supply was the catalyst required to get the deal over the line, Eddyline’s market expansion manager Adam Tristram told the Ticker.
“This gives us a competitive advantage by reducing our carbon, but it also shores up continuity of supply for CO2 which is the lifeblood of the industry,” Tristram said.
Typical breweries produce excess CO2 during fermentation that is not captured but rather vented into the atmosphere as a greenhouse gas. Then they will buy fossil-fuel-derived CO2 for their production and packaging needs, venting this again into the atmosphere as a greenhouse gas.
Earthly Labs’ technology captures waste CO2, refines it and makes it ready to reuse in brewing and packaging processes.
It has miniaturised the carbon capture technology that has long been reserved for large-scale brewers, making it affordable for craft players like Eddyline, which produces around 200,000 litres of beer a year from the former Pic’s peanut butter building in Stoke, where it is based.
The brewery, which was started by US ex-pats Mic and Molley Heynekamp in 2018 and now employs a further five people, has around 20 different beers in production and is sold in on-premise and off-premise channels across the country.
Its single 440ml cans and four-packs are sold in liquor stores including Liquorland, Super Liquor and Henry’s as well as around 50% – 60% of Foodstuffs stores in the North and South Island.
It added Countdown in September last year, starting with its core range of three single SKUs and in May this year launched its four-packs to now have distribution in around 103 out of 187 Countdowns.
Eddyline founder Mic Heynekamp said the investment, along with a centrifuge process to reduce its water use and soon-to-be installed solar panels, would ensure the company’s carbon footprint is as minimal as possible.
A California connection has New Zealand Merino Company (NZM) leaders positive they can top the more than $105 million in sales this year.
The company has formed a partnership with a Silicon Valley technology platform called Actual to tap into some of its smartest innovation and technology brains.
This will be woven into NZM’s model of long-term contracts, "storytelling" and premiums through its ZQRX programme with brand partners such as Smartwool, Allbirds icebreaker and Reda.
The aims include creating more value for farmers from their carbon responsibilities and to help shoppers buy woollen garments that last longer.
The joint venture was launched earlier this month at a ceremony attended by Prime Minister Jacinda Ardern and California Governor Gavin Newsom under a pohutakawa tree in San Francisco.
NZ Merino executive John Brakenridge was a delegate in the prime minister’s trade mission to the United States.
He said Silicon Valley tech companies were masters of machine learning and Actual’s input could be in the form of predictive models on farms that might show a need for more planting or shifting stock.
The positive environmental impact from these tools to monitor and measure their carbon footprint would help brand partners gain higher premiums from the marketplace. This would incentivise farmers to lower their carbon emissions and increase their biodiversity, he said.
He said woollen garments showing substance, traceability and low impact were in tune with the United States where environmental, social and corporate governance was now written into legislation, he said.
"We are super excited about the whole interest in agriculture and technology and getting some of the smartest people to lean in and support our farmer group.
"Farmers are coming under increased pressure for compliance and so forth and overlay that with carbon, so this is a way to bring this together that is a real use to growers."
Mr Brakenridge said much of the carbon approach to farming was through compliance and a "taxation mindset", but the joint venture would work to create opportunities.
He said more value would be added from differentiating the joint venture partners’ brands from others in the marketplace.
"I’m determined to [improve] the sales of our brand partners running with ZQRX of over $105 million and we are investing in it.
"We think this is the way of the future and will continue to seek substantial growth not only for fine wool but mid-micron and strong wool."
Actual co-founder Karthik Balakrishnan said the initiative would provide steps so farmers and their brands could improve their sustainability and impact on the planet.
New Zealand Merino’s network of fine wool, mid-micron and strong wool farmers now owns a land base of 2million hectares — just under 15% of New Zealand’s pastoral farmland.
Mr Brakenridge said Californians appreciated the scale of this land area and also believed the way of the future was not through an adversarial approach.
There was a movement towards slow fashion and natural fibres, he said.
"People are coming out of this [Covid-19] period and are being far more considerate in their purchasing within the United States. "
On average, garments were only worn seven times. Globally, textiles were the second largest polluter behind oil and gas.
"Buying garments, and a huge amount is synthetics, and throwing it away after seven uses with all these microplastics is not the way forward," Mr Brakenridge said.
Shoppers would be better off by buying fewer low-impact garments and wearing them more often.
New Zealand Merino says its wool accounts for about 15% of the country’s supply, but is worth 43% of the value of this country’s wool clip.
Source: https://www.odt.co.nz/
Facilitating greater economic connectivity between the United States and the Indo-Pacific has never been more important. In this pandemic era, with a rapidly developing digital landscape, geostrategic risks on the rise and with the forces of integration on the retreat, building concrete means to benefit our domestic economies through international collaboration with other high trust economic and political ecosystems should be at the top of our agenda. Commercial interests are inseparable from strategic interests in the Indo-Pacific, and the United States needs a forward-leaning economic approach in a region that is home to 60% of humanity and nearly two-thirds of the world’s economy. While participation in the IPEF does not preclude or replace membership in regional trade architectures like the CPTPP, for the IPEF to be most effective we urge the United States and other IPEF members to put all incentives on the table – including those that may require closer consultation with Congress. That is the best way to achieve the most meaningful benefits for American businesses, workers, and consumers.
Done correctly, the IPEF presents a significant opportunity to forge more resilient global supply chains, high-standard digital rules of the road, and energy transition outcomes that will drive prosperity on both sides of the Pacific. Small and medium-sized enterprises especially stand to benefit from trade facilitation commitments that will increase the ease of doing business across borders in the region, particularly in the digital space. Global crises continue to illustrate how business disruptions can drive up costs and securing supply chains at critical Indo-Pacific hubs can preemptively shield consumers from these price shocks. A robust framework that addresses these issues, many of which have come into sharp relief in the past six years, can stand on its own as an important contribution to regional economic integration. American Chamber of Commerce in Australia American Chamber of Commerce in Indonesia American Chamber of Commerce in Japan American Chamber of Commerce in Korea American Chamber of Commerce in Malaysia American Chamber of Commerce in New Zealand American Chamber of Commerce in the Philippines American Chamber of Commerce in Singapore American Chamber of Commerce in Thailand American Chamber of Commerce in Vietnam US-ASEAN Business Council US Chamber of Commerce US-India Business Council US-Korea Business Council US-Japan Business Council
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