Pinsent Masons advises GFG Alliance on the de-merger of SIMEC ZEN Energy

The de-merger 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.

Commenting on the deal, corporate partner Ewan Robertson said: “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.”

“Given the intertwined nature of the businesses and the financial support provided from various sources, the de-merger 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.”

GFG Alliance is a collection of global businesses and investments owned by Mr Sanjeev Gupta and his family. GFG Alliance employees 35,000 people across 30 countries and has revenues of US$ 20 billion. GFG Alliance is a leader in sustainable industry with a mission to become Carbon Neutral by 2030.

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 on M&A matters; partner Jim Hunwick and lawyer Jesse McNaughton on financing matters; and partner Katie Williams and associate Patrick Williams on employment aspects. The deal also benefited from the firm’s Vario service offering with legal consultant Dariel de Sousa assisting on energy regulatory matters.