By NZPA
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Wednesday 12th June 2002 |
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The future ownership of the utility has been the subject of speculation this year as Aquila has been looking to sell $US1 billion ($NZ2.07 billion) of its investments.
UnitedNetworks chief executive Dan Warnock said in a statement today the company has appointed Deutsche Bank to seek expressions of interest from potential buyers.
UnitedNetworks is seeking a buyer of either all the shares, or the company's assets and business, Mr Warnock said.
The company would consider selling the company either as a whole or in parts. It owns three regional electricity distribution networks, gas distribution network, broadband telecommunications network, and other assets.
The sale process is expected to take about three months.
"The ultimate decision of whether to divest, and on what basis, will be made based on what UnitedNetworks considers to be the best value outcome for all UnitedNetworks shareholders," Mr Warnock said.
Any share sale process would be through a full offer under the Takeovers Code.
Parties will be asked to file an expression of interest notifications by June 28, 2002. Following due diligence, binding bids will be submitted in late August and a decision is expected that month.
UnitedNetworks is New Zealand's 11th largest company by market capitalisation, with assets of $2.3 billion.
In May UnitedNetworks said it believed all Aquila assets were under review as its credit rating was under pressure from the international ratings agencies.
Aquila's Australian assets have also been under review.
Aquila owns 55 percent of UnitedNetworks, through its majority shareholding in Utilicorp NZ which owns 70.2 percent of UnitedNetworks.
Aquila posted a bad first quarter result at a time when ratings agencies were reviewing the energy sector in the wake of the Enron collapse.
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