VCT
09/11/2015 09:00
ASSET
PRICE SENSITIVE
REL: 0900 HRS Vector Limited
ASSET: VCT: Sale of Vector Gas Limited to First State Funds
Vector is pleased to announce that as a result of its strategic review, it
has agreed to sell all of the shares in Vector Gas Limited for $952.5
million, resulting in a gain on sale of approximately $167 million.
Vector Gas' assets comprise gas transmission pipelines, and gas distribution
networks outside of Auckland. Vector Gas is also a leading provider of
unregulated pipeline management services and is the technical and system
operator for the Maui Pipeline.
Vector believes this is a great outcome, further strengthening our balance
sheet to fund organic growth in Auckland and pursue attractive unregulated
growth. The proceeds will initially be used to repay debt.
In addition, Vector is also pleased to enter 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 co-operate operationally on gas distribution activities.
First State Funds comprises two infrastructure funds managed by First State
Investments (known in Australia as Colonial First State Global Asset
Management), which is a leading global infrastructure asset manager, with
approximately NZ$7 billion of equity invested in infrastructure assets across
Australia, New Zealand and Europe.
The sale is conditional only on approval under the Overseas Investment Act
2005, and by the shareholders of Vector, which will be sought at a special
meeting expected to be held in December. Settlement is scheduled to occur 10
business days after satisfaction of the conditions.
Vector will be working with First State Investments over the coming months to
ensure a smooth transition with a view to completing the transaction by 31
March 2016.
Vector remains committed to maintaining a sustainable dividend, and the sale
will not result in a special dividend or a share buyback.
Vector acknowledges Goldman Sachs who acted as the company's financial
advisor throughout the strategic review process.
ENDS
End CA:00273036 For:VCT Type:ASSET Time:2015-11-09 09:00:33
