The Southland Power Trust has settled a significant transaction valued at $89.6 million to acquire the remaining interests in key regional electricity network assets.
Through its wholly-owned subsidiary The Power Company Ltd (TPCL), the trust now owns 100% of OtagoNet, Lakeland Network Ltd, and PowerNet Ltd, having acquired stakes formerly held by Electricity Invercargill.
Trust chairman Carl Findlater emphasised their strategic importance.
"The sale of our holding in Southern Generation Limited Partnership (SGLP) earlier this year was the first step in a strategy designed to ensure TPCL would be well-positioned to take advantage of growth opportunities," he said.
"These acquisitions are the realisation of that strategy, consolidating ownership and management of local electricity networks for the direct benefit of southern region consumers.
"The overarching result is a significantly simplified company structure, improved governance, and management efficiencies."
Most importantly, the trust had formed a strong, locally-owned electricity network that would support increasing demand for electrification in the region, Mr Findlater said.
The operations of OtagoNet, Lakeland, and PowerNet will remain unchanged, while PowerNet will continue to manage Electricity Invercargill’s network under a long-term network management agreement. — APL
