The Southland Power Trust has entered into a sale-and-purchase agreement to acquire, through its wholly owned subsidiary The Power Company Ltd, the remaining interests in the OtagoNet Joint Venture, Lakeland Network Ltd and PowerNet Ltd that it does not already hold.
The trust already owns 75.1% of OtagoNet and Lakeland and 50% of PowerNet.
The acquisition will be completed by Last Tango Ltd — a wholly owned subsidiary of The Power Company Ltd — buying 100% of the shares in Pylon Ltd, which holds the remaining interests in OtagoNet, Lakeland and PowerNet, from Electricity Invercargill Ltd, a subsidiary of Invercargill City Holdings Ltd.
Trust chairman Carl Findlater said the decision was motivated by the trust’s commitment to support increasing demand for decarbonisation and electrification across the region.
"The trust is committed to protecting electricity consumers’ interests and supporting the growing demand for electrification of the Southland and Otago economies through strategic investment. This acquisition aligns with that vision and ensures the southern region’s vital infrastructure remains in local hands.
"In addition, these acquisitions will enable us to streamline our operations, providing greater focus and economies of scale — all of which will benefit the trust’s beneficiaries and southern region communities," he said.
The Power Company Ltd was committed to working closely with all stakeholders to ensure a smooth transition, and the operations of OtagoNet, Lakeland and PowerNet would remain unchanged.
PowerNet would continue to manage EIL’s network under a long-term network management agreement. — APL
