Sharechat Logo

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

Monday 21st June 2021

Text too small?

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



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
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:

Arvida Group Limited (NZX: ARV) Opening of Rights Offer
Move Logistics Group Limited (NZX: MOV) Announces $40m Capital Raise
27th October 2021 Morning Report
The a2 Milk Company Limited (NZX: ATM) Investor Day 2021
Contact Energy Limited (NZX: CEN) Considers Green Capital Bond Offer
Tourism Holdings Limited (NZX: THL) Sells Mighway and SHAREaCAMPER to Camplify
26th October 2021 Morning Report
Harmoney Corp Limited (NZX: HMY) Prices $105m Inaugural ABS Transaction
New Zealand Rural Land Company Limited (NZX: NZL) Agreement to acquire large scale dairy asset portfolio
EROAD Limited (NZX: ERD) launches Clarity Solo Dashcam