Electricity Market Welcomes Its Newest Player

Electricity Market Welcomes Its Newest Player, Z Energy

Image result for z energy and flick

With a $46 million investment in Flick Electric, Z Energy has made its entrance into the retail electricity market.

As New Zealand’s largest petrol company, Z Energy will have a 70.1 per cent stake in Flick Electric, a four-year-old privately-held power retailer.

Z Energy executives say its recent purchase will help its company’s long-term sustainability and growth. The investment will aid Flick with its future growth plans, too.

Future of Flick’s Growth is Stronger with Recent Investment

Research completed by Flick over the past four years showed that there was a need for a new engagement model in energy retail. Z’s investment will play a large part in helping Flick with future growth.

The investment will benefit Z Energy, too. Besides maximising the innovation potential of the energy sector, Z Energy executives will be focused on the contribution it can make to a lower carbon transport future.

The investment will also help Z extend into one of their three preferred market spaces – future fuels, mobility and the last mile.

Z Energy Will Own Almost Three-Quarters of Flick Electric’s Total Shareholding

Two payment instalments will be made before Z-Energy owns almost three-quarters of Flick Electric’s stake.

Initially, twenty-two per cent of Flick in new issued capital will be paid by Z Energy at the cost of $15.6 million.

An additional 48.1 per cent of existing shares will be purchased for $30.4 million. This will result in Z Energy holding 70.1 per cent of the total shares.

Eastland Group, Evander Management and Angel HQ are other investors with Flick. Flick’s revenue, which totalled $43.4 million in the year ending March 31, is expected to be earnings positive for Z Energy within four years.

Flick’s Technology Development Attracted Z Energy

Flick’s start-up mentality along with its use of technology was an investment attraction for Z Energy.

Through the use of smart metering technology and proprietary software, Flick is able to offer customers electricity based on half-hourly wholesale rates, plus a margin.

Couple Flick’s assets with Z Energy’s innovation and marketing experience, operational scale and resources, and a successful future is predicted for both.

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