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New Zealand's overseas investment watchdog has approved a Chinese conglomerate's bid to buy Vector's Wellington power lines network.
Vector sought approval earlier this year for the $785 million deal to sell 100 per cent of the shares of Vector Wellington Electricity Network Limited to Hong Kong-based Cheung Kong Infrastructure Holdings (CKI) and Hongkong Electric Holdings Limited (HKE).
Finance Minister Michael Cullen today said he was confident CKI and HKE had met all the relevant criteria of the Overseas Investment Act including business experience and financial commitment.
Because the Wellington electricity network was not on sensitive land it did not face the higher national interest tests that were placed on the proposed partial sale of Auckland International Airport earlier this year.
"The hurdle the applicants had to clear was significantly lower," Dr Cullen said.
CKI and HKE form part of the Cheung Kong group, which is the largest business conglomerate in Hong Kong with interests in 55 countries, including property, energy and telecommunications.
CKI has significant shareholdings in the major electricity networks of South Australia and Victoria, as well as a company supplying power to Ontario, Alberta and Saskatchewan in Canada.
- NZPA
