Sharechat Logo

Cheung Kong gains consent for Vector Wellington bid

Wednesday 16th July 2008

Text too small?
Cheung Kong Infrastructure Holdings, the Hong Kong-based company controlled by billionaire Li Ka-Shing, gained consent to bid for Vector's Wellington electricity network.

The joint bid by Cheung Kong and Hong Kong Electricity Network does not trigger the same national interest tests that resulted in the scuppering of Canada Pension Plan Investment Board's offer for Auckland International Airport, Finance Minister Michael Cullen said in a statement.

The NZ$785 million deal would give the Hong Kong companies control of the network that supplies the Wellington region. Vector bought the network from US-based Aquila in 2002 and it was previously owned by Canada's TransAlta Corp.

Vector's shareholders approved the plan on June 16. The settlement date is expected to be about July 24, Vector said today. Shares of the company have dropped about 10% this year, less than half the NZX 50 Index's decline.

Chief executive Simon Mackenzie said in April that his company would use the funds to pay debt and may seek new infrastructure investments.

By Jonathan Underhill

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Vector ekes out 2.3% gain in FY profit as technology unit bolsters earnings
Vector may beat guidance for FY 2013, suffer 2014 earnings drop
Vector cleared to buy Contact Energy's gas metering business for $63M
Vector to cut gas distribution prices by 18 percent
Vector 1H result up 10.8 percent in flat economy
ComCom takes issue with Vector on regulated rates of return
Vector credit rating may come under scrutiny
Vector profit steady, underpined by revenue growth
Long-running battle over power line prices coming to a head
Vector appoints Beddoe as chief risk officer