New Zealand's Vector to sell 50% stake in metering business (updated)

Vector

20/12/2022 21:40

(Updates with more details on the deal)
       Dec 21 (Reuters) - New Zealand's utility Vector Ltd
 VCT.NZ  said on Wednesday it had reached a conditional
agreement with QIC Private Capital to sell a 50% stake in its
metering business for an expected gross proceeds of NZ$1.74
billion ($1.10 billion).    
    The deal values the business at NZ$2.51 billion, with the
two parties expected to finalise the arrangements in the first
quarter of 2023.
    Vector started inviting proposals for the business in
August, following media speculation regarding the sale. 
        "Upon completion, the board will consider the details of
how the proceeds of the sale will be used, however, we are
committed to reducing overall debt," Vector Chair Jonathan Mason
said in a statement. 
  
    The deal is supported by Vector's major shareholder, Entrust
and Co, it said.
        The energy distributor is also in discussions with QIC
to enter into a strategic alliance with Queensland based meter
business Yurika.
  
($1 = 1.5770 New Zealand dollars)
 (Reporting by Navya Mittal in Bengaluru; Editing by Anil
D'Silva)
 ((Navya.Mittal@thomsonreuters.com;))