QIC Infrastructure fund, managed by QIC Private Capital Pty Ltd completed the acquisition of 50% stake in metering business from Vector Limited.
June 29, 2023
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QIC Infrastructure fund, managed by QIC Private Capital Pty Ltd entered into a conditional agreement to acquire a 50% stake in metering business from Vector Limited (NZSE:VCT) for NZD 1.7 billion on December 21, 2022. The gross consideration of NZD 1.7 billion also includes assumption of NZD 980 million of metering business debt. The metering business generated revenue of NZD 235.6 million and had EBITDA of NZD 173.7 million at June 30, 2022. The agreement is conditional on consent under the Overseas Investment Act 2005 in New Zealand, approval under the Foreign Acquisitions & Takeovers Act 1975 (Cth) in Australia, and finalisation of third party financing arrangements from external lenders and QIC investment funds. The transaction is expected to be finalized in Q2. The use of sale proceeds will be decided upon completion though Vector is committed to reducing overall debt. Citigroup Inc. (NYSE:C) acted as financial advisor to Vector Limited (NZSE:VCT). As on April 4, 2023, The parties expected to enter into definitive documentation in respect of the sale in Q1 2023, with completion conditional on consent under the Overseas Investment Act in New Zealand, approval under the Foreign Acquisitions & Takeovers Act in Australia, and finalisation of third-party financing arrangements. Vector confirms that definitive sale documentation has been executed and the condition relating to finalisation of third-party financing arrangements has now been satisfied. Completion of the sale remains conditional on Overseas Investment Act and Foreign Acquisitions & Takeovers Act approvals. As of June 2, 2023, the transaction has become unconditional and is expected to close on June 30, 2023.Nick Baker and Aaron White of Herbert Smith Freehills acted as legal advisor, and Jon Evans led on the financing aspects of the deal. Russell McVeagh acted as QIC's New Zealand legal advisers. King & Wood acted as legal advisor to Vector Limited (NZSE:VCT).
QIC Infrastructure fund, managed by QIC Private Capital Pty Ltd completed the acquisition of 50% stake in metering business from Vector Limited (NZSE:VCT) on June 30, 2023.
Vector Limited is a New Zealand-based energy company. The Company operates a portfolio of businesses delivering energy and communication services to residential and commercial customers across New Zealand and the Pacific. The primary operations of the Company are electricity and gas distribution, natural gas, and liquefied petroleum gas (LPG) sales, metering, telecommunications, and new energy solutions. The Company's segments include Regulated Networks and Gas Trading. The Regulated Networks segment includes Auckland electricity and gas distribution services. The Gas Trading segment includes natural gas and LPG sales, storage, and transportation. Through Vector Fibre, the Company builds, monitors, and maintains its own fiber network for businesses who demand data networks. The Company specializes in delivering wholesale data networks that enables its partners to create solutions for their clients.