NEW ZEALAND

Powerco stake attracts international bidders

Twenty domestic and international firms have expressed interest in acquiring major stakes in majo...

The Daily News today reports New Plymouth District Council Mayor Peter Tennent as saying the potential buyers - from North America, Asia, Australia and New Zealand - had expressed an interest in the NPDC and Taranaki Electricity Trust 49% shareholding in listed company Powerco.

Tennent expects potential buyers to have made indicative bids by mid-June, with a purchase agreement in place by July.

NPDC and TET decided last month to sell their respective stakes in Powerco following revelations that NGC Holdings, Powerco and Auckland-headquartered network company Vector were discussing possible merger options.

While the market value for their combined 49% share is NZ$325 million, commentators predictions last month estimated the value could be as high as NZ$500 million.

Tennent declined to comment on the identity of interested companies, but said the interest had been better than expected. "There is substantial international interest, that's all I can say."

Commentators say NGC, and Aussies AGL and Australian Pipeline Trust (APL) could be among those interested.

NPDC chief executive Rodger Kerr-Newell is presently in Australia with PriceWaterhouseCoopers' Craig Rice, giving presentations to prospective buyers.

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