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TrustPower pays $13.7 million for Energy Direct NZ to widen customer base

Wednesday 15th May 2013

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TrustPower, the electricity generator and retailer controlled by Infratil, will pay $13.7 million for the assets of Wanganui council owned Energy Direct New Zealand, allowing it to add customers near its electricity plants.

Energy Direct's customers are close to TrustPower's Patea hydro scheme and its Tararua wind farm, and the purchase would also allow TrustPower to sell other services to a wider customer base, chief executive Vince Hawksworth said in a statement.

"The acquisition of Energy Direct NZ assets will give TrustPower an opportunity to expand our field of operation, and supply natural gas as well as our existing electricity and telecommunications service to customers," Hawksworth said.

The agreement will see TrustPower add about 15,000 electricity customer meters and 10,000 gas meters to its existing 206,000 customer base.

Shares in TrustPower, the third largest energy supplier on the New Zealand exchange, were unchanged at $7.40.

The purchase, which will be funded through existing cash facilities, will take effect from July 1.

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