TrustPower to purchase Wanganui based company

TrustPower Limited has reached agreement to purchase the key assets of Energy Direct New Zealand, often referred to as Energy Direct or EDNZ, for $13.65 million (subject to a post-completion working capital adjustment).

The agreement, which will see TrustPower taking over the assets of EDNZ including approximately 15,000 electricity ICPs and 10,000 gas ICPs, will take effect from 1 July 2013.

Existing EDNZ staff will become members of the wider TrustPower team, but the EDNZ business will continue to serve customers from its Wanganui base.

Like EDNZ, TrustPower is a provincial, not big city, based energy company, recognised for real customer service and a personal touch. EDNZ's customers are located close to TrustPower's   32MW Patea hydro scheme and the 161MW Tararua Wind Farm.

TrustPower Chief Executive, Vince Hawksworth, says those two factors, along with TrustPower's intention to grow from a regional New Zealand electricity supplier to a leading multi-product utility provider, made EDNZ an attractive prospect.

"The acquisition of EDNZ assets will give TrustPower an opportunity to expand our field of operation, and supply natural gas as well as our existing electricity and telecommunications service to customers, therefore better meeting their needs.  We also look forward to serving  EDNZ's existing customers, and offering them new products and fantastic service."

Mr Hawksworth says TrustPower is committed to supporting the communities in which it operates, and will take over EDNZ's existing sponsorship of the Wanganui Coastguard. In addition, TrustPower hopes to be able to work with the Wanganui District Council to introduce the TrustPower Community Awards to the region, allowing volunteers in the Wanganui community to enjoy the same recognition and reward as those in the other 25 regions where TrustPower already operates.

Completion of the purchase is conditional upon, amongst other matters, entry into certain business agreements and TrustPower being satisfied with the number of electricity and gas ICPs of the business.  The last of these conditions is to be satisfied by 14 June 2013.

Part of the purchase price is to be paid as a deposit upon the sale and purchase agreement becoming unconditional with the balance to be paid in cash at completion.  The working capital adjustment is to be made following completion.