Friday 21st April 2017 1 Comment
|Text too small?|
The New Zealand Superannuation Fund has completely written off the value of its investment in US wind turbine company Ogin which is in the process of being wound down.
The Super Fund invested US$55 million in Massachusetts-based Ogin in 2013 to give the US start-up capital to develop new products before going public, of which US$25 million was debt and US$30 million was equity. Those plans didn't come to fruition and after Ogin failed to raise more capital last year, the Super Fund wrote down the investment to nil in June 2016, which had been valued at NZ$47.5 million. The debt portion was repaid in 2014 and the Super Fund injected a further US$3.8 million.
Ogin recently sold the wind turbine applications platform to Danish wind turbine maker Vestas, and the Super Fund said Ogin's remaining assets are being divested and it's being wound down.
"Commercially this has not been a successful investment for the NZ Super Fund and we are disappointed with the outcome," chief investment officer Matt Whineray said. "We went into this investment knowing that the company was early-stage. We accepted that because of the earlier stage investment there were a broader range of possible outcomes associated with the potential for high returns."
The Ogin investment barely dented the fund's returns, representing just 0.2 percent of its $30.1 billion portfolio at the time of the write-off. Since then, the fund has expanded to $34.1 billion as at March 31.
Whineray said the fund still sees long-term value in alternative energy.
Talisman Quarterly Activities Report to 30 June 2020
General Capital gives notice of Annual Meeting
Scales Corporation - Business Update
Fonterra Co-operative Group Global Dairy Update
Fonterra revises its 2019/20 and 2020/21 forecast Farmgate Milk Price ranges
Briscoe Group Limited Market update: 2nd Quarter Sales to 26 July 2020
thl market update - A frame work for 2021
Me Today - Outcome Of Share Purchase Plan Offer
Maxigesic IV® licensed in six new European nations
Evolve Shareholder Update