AGL tipped to exit power firm

Listed power company TrustPower expects one of its cornerstone shareholders, Australian Gas Light, to sell out now it has secured control of Wellington power retailer TransAlta.

"We expect they'll exit," TrustPower chief executive Jeff Williams said.

Sydney-based AGL bought a 7.9 per cent stake in TrustPower in January 1999 and last July said it wanted to boost its holding to 49.5 per cent. It now holds 20.5 per cent.

When AGL arrived on the register, TrustPower said it saw the energy giant's link as a key part of its growth strategy.

In the past year, TrustPower's assets have nearly doubled to $809 million while sales have jumped 360 per cent to $430 million.

However, in January AGL switched its attention to TransAlta, New Zealand's largest electricity retailer, buying TransAlta Canada's 75.8 per cent stake through its 71.6 per cent subsidiary, Natural Gas Corporation.

"It is just unfortunate that the deal with TransAlta came along when [it did]," TrustPower chairman Avon Carpenter said.

- NZPA