Vector sells gas assets
PERTH (miningweekly.com) – New Zealand-based Vector will sell its shares in Vector Gas to Australian infrastructure fund manager First State Funds for $952.5-million.
Vector Gas's assets comprise gas transmission pipelines and gas distribution networks outside of Auckland, and the business unit is also a leading provider of unregulated pipeline management services and is the technical and system operator for the Maui pipeline.
The sale was conditional only on approval under the Overseas Investment Act and Vector shareholder approval, which would be sought at a special meeting to be held in December.
Settlement of the transaction was scheduled to occur ten business days after satisfaction of the conditions.
Vector told shareholders on Monday that the transaction was a great outcome for the company, further strengthening its balance sheet to fund organic growth in Auckland and to pursue attractive unregulated growth.
The proceeds will initially be used to repay debt.
Meanwhile, Vector also entered into a memorandum of understanding with First State Funds to consider opportunities to co-invest in regulated and unregulated energy infrastructure, both in New Zealand and offshore, and to cooperate operationally on gas distribution activities.
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