Powerco shareholders approve UnitedNetworks purchases

3.00pm

Shareholders in New Zealand energy distribution firm Powerco Ltd have approved the company's plan to buy some of the assets of UnitedNetworks Ltd.

Powerco plans to buy the electricity networks of UnitedNetworks in Tauranga, Waikato and the Coromandel for $590 million, its contribution in a joint ownership deal with Hawke's Bay Networks.

It also plans to buy UnitedNetworks' gas networks in the lower North Island for $220 million.

Earlier this month Powerco raised $102 million from institutions as part of a "jumbo" equity offer at $1.60 per share. Another $48 million will be put on the market next month.

Powerco shares are tightly held, with New Plymouth District Council owning 47.6 per cent, Taranaki Electricity Trust owning 16.8 per cent and a little under 4 per cent owned by the Powerco Community Trust.

Powerco shares were trading down 4c to $1.69 in early afternoon trading.

- NZPA