Trustpower to proceed with demerger, shareholders to vote in July

Friday 11th March 2016

Trustpower is going ahead with plans to spin out its windfarms and renewable development pipeline into a separate business, and will put the demerger to a shareholder vote in July.

The Tauranga-based company expects to send out documents to shareholders in June for a special meeting in July which would create two separately-listed companies, it said in investor presentation slides published on the stock exchange. One firm would hold its trans-Tasman windfarms and its wind and solar development projects, and the other would keep the remaining assets such as its hydro-generation and retail network under the Trustpower brand.

Trustpower shareholders would receive one share in each of the companies for every existing share they own in a court approved scheme of arrangement, with the first hearing expected in May.

Since the plan was first touted in December, Trustpower has confirmed development approval for the Palmer wind farm in South Australia, subject to the appeals process, and received sign-off to expand generation at the Salt Creek wind farm in Victoria.

Majority shareholder Infratil has already given its blessing to the split, and its manager, HRL Morrison & Co, would have representation on the boards of both companies.

Trustpower will report its annual results in May.

The shares were unchanged at $7.55, and have declined 3.2 percent this year.

BusinessDesk.co.nz

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