Powerco welcomes top bidders

By PAUL PANCKHURST

One deal is done, but the shake-up of the energy sector rolls on.

In New Plymouth, short-listed bidders for a 53 per cent stake in gas distributor and electricity lines company Powerco are this week making site visits and getting management presentations.

The market yesterday valued that stake at $350 million.

PricewaterhouseCoopers partner Craig Rice said final bids were due on August 6, with an outcome expected within two weeks of then.

The vendors are the New Plymouth District Council, Taranaki Electricity Trust and Powerco Wanganui Trust.

They put their stakes on the block after the Business Herald reported on April 24 that Powerco was in merger talks with NGC.

That story prompted NGC to disclose it was in talks with Powerco and the Auckland lines giant Vector on "potential opportunities".

NGC is the owner and operator of gas transmission and distribution networks and is 66 per cent owned by Australian energy company AGL. Its market capitalisation yesterday was $1.2 billion.

AGL is seen as less likely to exit NGC after missing out on Edison Mission's stake in Contact.