By NZPA
|
Thursday 4th July 2002 |
Text too small? |
New Zealand's biggest electricity lines company has been put up for sale by its majority US owners, energy giant Aquila.
Aquila holds its share through its ownership of Utilicorp New Zealand, which owns 70 per cent of UnitedNetworks. Bids have been invited for the whole company or its separate businesses, which include electricity networks across the Coromandel peninsula, Bay of Plenty and eastern Waikato.
Wel Networks has confirmed its interest in the sale but says it has made no commitment to bid, and has not decided whether it will.
Chief executive Mike Underhill said the company had lodged an expression of interest with sale manager Deutsche Bank. But he downplayed the significance of the move.
"It's fair to say we have some interest. We, along with others, have put an expression of interest in but that's all it is," said Mr Underhill.
"It's a million miles from bidding. At this stage it's just finding out what it's all about. It's extremely early in a process that will take some time."
Wel Networks' owners, the Wel Energy Trust, is expected to be briefed on the matter at its first meeting next week.
Incoming trustee Garry Mallett, whose rebates ticket won five of eight seats at trust elections during the weekend, was cautious about any plans to bid.
UnitedNetworks distributes power to about 30 per cent of the country's electricity consumers through lines networks in three regions.
The second-largest of those covers the Coromandel peninsula, south through Bay of Plenty and eastern Waikato to Kaimanawa State Forest. Within that area alone United has more than 167,000 customers.
Wel Networks, the country's fifth-largest lines company, has 74,000 customers across the Waikato and is estimated to be worth more than $200 million.
Mr Mallett said the trust would have to be convinced any bid for part or all of United Networks was in the interests of Wel Networks' existing customers.
"These could be expensive customers," he said. "A lines company makes its money off a large amount of customers on a small number of lines. In the Coromandel you've probably got the opposite."
Time to investigate any bid was also short, he said. Potential buyers will be asked to submit non-binding bids by the middle of July.
"It's got to get the green light from us," said Mr Mallett.
No comments yet
Two listed lines companies make the grade
Special Report: Electricity - Worth A Flutter?
