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AGL to sell controlling NGC stake to NZ energy company Vector
21 October 2004 - The Australian Gas Light Company (AGL) Ltd is to sell its 66.05% interest in the North Island’s major gas pipeline company NGC Holdings Ltd to Auckland-based energy networks company Vector Ltd.
The sale would be subject to approval by the Commerce Commission.
Under the takeovers code, Vector is required to make a takeover offer for the full 100% of NGC. The remaining third of NGC shares are listed on the stock market.
AGL has agreed to sell its majority shareholding to Vector at $3.00 per share — a deal worth NZ$877.4 million in total — following a competitive tender by AGL.
Vector is the largest owner and manager of network infrastructures in New Zealand and is wholly owned by the Auckland Energy Consumers Trust, though the company said it may itself later list on the stock market. Vector holds $3 billion of assets and has annual revenue of over $550 million. It holds 35% of the New Zealand electricity market with 646,000 electricity consumers.
Vector holds 16% of the Auckland gas market with 72,000 consumers. It also has 200 km of fibre optic high-speed broadband voice and data communications in the Auckland and Wellington regions.
Vector chairman Michael Stiassny said NGC has a range of high quality assets which will not only enhance Vector’s strategic position, but also continue to play a major role in the country’s energy industry.
The companies will be merged if Vector gets 100 % of NGC. Otherwise NGC will be run as a separate company, he said.
