Eastland Group and shareholder Trust Tairāwhiti have announced the sale of Eastland Network to Firstgas Group, owned by Igneo Infrastructure Partners, for US$260 million in New Zealand.
The aim of the transaction is to strengthen Igneo’s position as a diversified energy utility in New Zealand, with Eastland providing electricity distribution alongside the Firstgas network of gas distribution, transmission and storage. Through the purchase, Igneo and Firstgas will provide the long-term resilience and security of the supply of electricity to more than 26,000 homes and businesses across 12,000 sq. km of the East Coast. Trust Tairawhiti and Eastland Group share proceeds and Trust Tairawhiti receives US$80 million (made up of a return of US$30 million of capital notes and a special distribution of US$50 million), with Eastland Group retaining the balance.
The sale, which is likely to be completed in early 2023, would release significant capital for Eastland Group’s strong pipeline of projects, including local and national renewable energy opportunities.