QIC blocks bid for Powerco ownership change

Queensland-based investment fund QIC is blocking the sale of the 42% of New Zealand electricity network company Powerco owned by Prime Infrastructure.

Prime is seeking to sell its stake to Toronto-based Brookfield Infrastructure Partners, a listed infrastructure and timber investor on the New York and Toronto stock exchanges, as part of Brookfield's merger with Prime, announced in August.

Brookfields already owns 40% of ASX-listed Prime.

QIC owns 58% of Powerco and has exercised pre-emptive rights to block the sale of Prime's stake in Powerco, leading to commencement of discussions that could yet see Prime buy a further 8% of Power to become a 50/50 shareholder or QIC buying the 42% of Powerco it doesn't already own.

While he was not privy to the reasoning, Powerco chief executive Richard Krogh told BusinessDesk "there appears to be a difference in how they want to pursue growth".

Powerco is New Zealand's second largest electricity network owner behind Vector and has $430 million of bonds listed on the NZDX.

Businesswire.co.nz

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