At a special shareholders meeting today, UnitedNetworks’ shareholders approved the sale of the company’s Eastern Electricity network to Powerco Limited and Hawke’s Bay Network Limited, and its Central Gas network to Powerco Limited.

New UnitedNetworks chairman Wayne Boyd said signing the agreements for
the asset sales was a condition of VECTOR Limited agreeing to make its takeover offer to acquire the shares of UnitedNetworks, which was announced in September. VECTOR is offering $9.90 for all UnitedNetworks shares, and has advised UnitedNetworks that it has so far reached a shareholding of 81.4%. VECTOR’s offer closes on 23 October.

The asset sale agreement with Powerco is conditional on Powerco shareholder approval, which is being sought at a meeting to be held on 29 October.

Settlement of the asset sales is expected to be completed in early November.