Southland Power Trust Settles NZ$89.6m Strategic Acquisitions

Southland Power Trust (SEPSCT) has settled a significant transaction valued at NZ$89.6 million to acquire the remaining interests in key regional electricity network assets.

Through its wholly-owned subsidiary The Power Company Limited (TPCL)[1], SEPSCT now owns 100% of OtagoNet, Lakeland Network Limited, and PowerNet Limited having acquired stakes formerly held by Electricity Invercargill Limited (EIL).

Carl Findlater, Chair of SEPSCT, emphasised the strategic importance of these acquisitions.

“The sale of our holding in Southern Generation Limited Partnership (SGPL) earlier this year was the first step in a strategy designed to ensure TPCL would be well-positioned to take advantage of growth opportunities.

“These acquisitions are the realisation of that strategy, consolidating ownership and management of local electricity networks for the direct benefit of southern region consumers.

"The overarching result is a significantly simplified company structure, improved governance, and management efficiencies. Most importantly, the Trust has formed a strong, locally-owned electricity network that will support increasing demand for electrification in the region,” he said.

The operations of OtagoNet, Lakeland, and PowerNet will remain unchanged, while PowerNet will continue to manage EIL’s network under a long-term network management agreement.

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