Vector Gas

Colonial First State Global Asset Management completes purchase of Vector Gas Limited

News | 20 April 2016

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Two infrastructure funds managed by Colonial First State Global Asset Management (CFSGAM) (known outside Australia as First State Investments), the Global Diversified Infrastructure Fund (GDIF) and the Colonial First State Active Infrastructure Income Fund (AIIF), have successfully completed the NZ$952.5 million purchase of Vector Gas Limited from Vector Limited.

Vector Gas Limited has been renamed First Gas Limited (FGL).

CFSGAM Director, Infrastructure Investment, Gavin Kerr, said; “We’ve seen great support for the transaction locally; the Overseas Investment Office approved the application earlier this month after the Vector Limited shareholders gave their approval at a special meeting on 16 December 2015.

“We’re looking forward to continuing to work closely with stakeholders to grow the business and position it to pursue other complementary opportunities.”

Mr Kerr said under the Transitional Services Agreement, Vector Limited has agreed to provide certain transitional services to FGL for up to nine months.

Based in New Plymouth, First Gas Limited operates more than 2,200 kms of high pressure gas transmission pipelines, 233 stations and associated non-network assets that supply natural gas from Taranaki to industrial consumers and non-Auckland distribution networks in the North Island.

The distribution network comprises more than 3,400kms of main pipes and an additional 1,400km of service pipes in Whangarei, South Auckland, Hamilton, Rotorua, Taupo, Tauranga and the Kapiti Coast. Through these distribution networks, FGL provides gas distribution services to gas retailers who sell gas to more than 60,000 customers.

FGL has appointed Richard Krogh as interim CEO to lead the business through the ownership transition. Richard was previously CEO of Powerco, New Zealand’s second largest electricity and gas lines business, and held other executive positions in energy companies.

“FGL is a high quality business which fits well with our long term investment strategy. The business operates under a stable regulatory regime and with its experienced management offers investors an excellent platform on which to build for the future.” Mr Kerr said.

FGL represents the first major unlisted infrastructure asset acquisition in New Zealand by CFSGAM. CFSGAM looks forward to further investment in high quality assets in New Zealand, including the Maui Gas Pipeline (MGP) which was announced on 22 December 2015. The completion of MGP is subject to regulatory approvals including under the Overseas Investment Act and is targeted for the first half of 2016.

ENDS

For further information please contact:

Zoe Viellaris

Public Affairs and Communications

Phone: +614 77 342 564

Email: zoe.viellaris@cba.com.au

 

Kate Prince

Public Affairs and Communications

Phone: +614 75 813 726

Email: kate.prince@cba.com.au

 

Important Information

This press release does not constitute any offer, invitation or inducement to distribute or purchase shares or to enter into an investment. Investors should take their own legal advice prior to making any investment. In particular, investors should make themselves aware of the risks associated with any investment before entering into any investment activity.