Firms close in on TrustPower

By Mark Reynolds


Alliant International of the United States and Wellington-based Infrastructure and Utilities NZ (Infratil) are creeping closer to securing control of Tauranga-based national electricity retailer and generator TrustPower.

Alliant has signed a conditional agreement to buy a further 14.9 million TrustPower shares, or 7.9 per cent of the company, from a Tauranga consumers trust. The deal is conditional on approval from the Tauranga District Council, but if it goes ahead as expected Alliant will increase its holding in TrustPower to 16.54 per cent.

At present market prices, the 7.9 per cent stake would change hands for just over $50 million.

Alliant, a large electricity utility with assets of more than $US5 billion internationally, is allied to Infratil, which already owns nearly 26 per cent of TrustPower, so the two companies would control 42.3 per cent of the Tauranga company.

If the latest sale goes unconditional, the consumers trust will retain 14.7 per cent, Australian Gas Light (AGL) 7.9 per cent and the Rotorua Energy Charitable Trust 3.5 per cent, with the remainder of the company widely held.

Alliant and Infratil have been making an impression on the TrustPower register since some TrustPower officials moved in February to block Infratil gaining further control. The executives unexpectedly decided to issue fresh capital in the company, including the 7.9 per cent holding to AGL..

Alliant's managing director in New Zealand, Chris Lindell, said last night that his company was interested in contributing more to the future of TrustPower.