Vector shareholders overwhelmingly back sale of gas assets

Wednesday 16th December 2015

Shareholders in Vector, the gas and electricity distributor, have voted overwhelmingly to sell its gas transmission and distribution assets outside Auckland to Australian investor First State Funds for $952.2 million.

At a special meeting in Auckland today, the resolution in favour of the sale of Vector Gas was backed by 813,399,422 votes, while 612,242 were cast against. The result means fewer than 1 percent of votes were cast against the deal. The special meeting had to be held because the value of the assets involved amounted to more than 15 percent of Vector's market capitalisation.

First State Funds comprises two infrastructure funds managed by First State Investments, known in Australia as Colonial First State Global Asset Management.

The sale is also conditional on approvals from the Overseas Investment Office and ministers. Settlement is anticipated by March 31 next year.

The shares were recently up 0.9 percent to $3.22, outperforming the broader S&P/NZX 50 Index.

BusinessDesk.co.nz

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