Eastland Group and its shareholder Trust Tairāwhiti have jointly announced the group head office will be reshaped and transition to a new operational and governance model as a holding company.
Over the past two years Eastland Group has executed two very significant and hugely successful transactions.
The first was the 2023 sale of Eastland Network for $260 million. More recently, the Group sold a 50% interest in Eastland Generation at an enterprise value in excess of $500 million to Obayashi Corporation. This settled on 30 April 2024.
Alongside the decisions to undertake these transactions, the company and shareholder have been working through how the company should be shaped moving forwards.
In recent months, Eastland Port and Eastland Generation have been restructured to operate independently, with their own autonomous management teams and boards. Eastland Port includes Gisborne Airport and its other regional infrastructure investments.
Group head office has historically provided these entities with a range of corporate services, which are no longer required.
Having concluded both transactions, Group chief executive Matt Todd, who has led Eastland Group since 2003, will end his tenure with the company in July. He will support the transition to the new operating model.
Trust Tairāwhiti chair David Battin acknowledged Matt’s strong leadership and innovative approach to building robust commercial regional infrastructure businesses and creating shareholder value over the last 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.”
Mr 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.”
Eastland Group chair Matanuku Mahuika also recognised the contributions of Mr Todd and Eastland 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. We are now moving into a new stage with new opportunities, but it means a new structure and this will likely impact some of the Group head office staff. They are our priority and we are continuing to work through the change process with them.”
New governance structure
Trustees have appointed current Eastland Group directors Matanuku Mahuika and Jon Nichols to the Eastland Generation joint venture board, alongside two Obayashi directors.
A board recruitment process is now underway 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 on reporting through to Trust Tairāwhiti. It will also work alongside the Trust to assess future commercial investment opportunities.
“We believe this new model will drive further efficiencies. It aligns with the Trust’s strategic focus on regional investments that will provide for our beneficiaries now and into the future,” said Mr Battin.