New Zealand’s utility Vector Ltd said it had reached a conditional agreement with QIC Private Capital to sell a 50% stake in its metering business for 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.
Source: Reuters.com