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Trustpower Limited (NZX: TPW) Announces Conditional Sale of Its Retail Business

Monday 21st June 2021

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Trustpower today announces the conditional sale of its gas, telecommunications, and retail electricity supply business (excluding the supply of electricity to commercial and industrial customers) to Mercury NZ Limited (Mercury) for $441million, subject to post-completion adjustments. The sale of the retail business will take effect following the conditions of the sale being met, which is expected to be late 2021 or early 2022.

Key conditions of sale include Commerce Commission approval, Trustpower shareholder approval (which is expected to be sought at its Annual Shareholder meeting on 22 September 2021) and the TECT restructure being completed.

An electricity hedge structure has been agreed to support the customer retail demand. More details of this are provided in the separate Investor Presentation released along with this statement. The terms of this hedge underpin Trustpower’s earnings for the medium term and the initial price has been set taking advantage of current firm wholesale prices.

The Trustpower name and brand is included in the transaction and will transfer at the completion of the sale. Trustpower will select a new name in due course.

Trustpower will consider capital structure, dividend policy and opportunities for re-investment of the proceeds as settlement of the transaction approaches. A further update will be provided at the Annual Shareholder meeting on 22 September 2021.

Forsyth Barr acted as Trustpower’s Financial Advisor in respect of this transaction.

Please see the links below for details

Media release 21 June 2021

Investor Presentation 21 June 2021

Source: Trustpower Limited

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