Vector is set to sell a 50 per cent stake in its New Zealand and Australian metering business, Vector Metering, to private equity group QIC Private Capital (QIC).
The deal is expected to generate proceeds of $1.74 billion, including about $980 million of acquisition debt, and values the business at $2.51b, compared to a book value of $650m.
The agreement, which is supported by major shareholder Entrust, is conditional on consent from the Overseas Investment Office in New Zealand and approval under the Foreign Acquisitions & Takeovers Act in Australia, and finalisation of third-party financing arrangements.
Definitive documentation is expected to be entered into in the first quarter of 2023, with completion in the June quarter, assuming conditions are met. QIC has been granted a period of exclusivity while these arrangements are concluded.聽
QIC and Vector are also in discussions to enter into a strategic alliance with Yurika, owner of a Queensland-based meter business. Vector shares rose 0.7 per cent to $4.24 in early trading on the NZX.
- BusinessDesk
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