Vector appoints Barrenjoey Capital to advise on fibre business

Vector delivers services to more than 620,000 residential and commercial customers across New Zealand. Photo / NZME

Auckland-based energy company Vector has appointed Australia’s Barrenjoey Capital Partners to assist in a strategic review of its fibre business.

Vector Fibre builds and manages data network solutions for businesses predominantly in Auckland, including major businesses, government entities and some leading channel partners.

“There is no certainty that the strategic review will result in any transaction, nor if a transaction were to occur, its terms or the transaction value achieved,” Vector said.

The company, in its last annual report, said the fibre operation had performed to expectations.

Vector delivers energy and communication services to more than 620,000 residential and commercial customers across New Zealand.

The company is 75.1% owned by Entrust - a private trust representing 365,000 beneficiaries.

In January, Vector completed the sale of its LPG business Vector Ongas, and the group’s 60.25% shareholding in Liquigas Ltd.

This followed the sale of the group’s natural gas trading business last July.

Last month, Vector said the nine months to March 31 saw connection numbers continue to grow across Vector’s Auckland electricity and gas networks.

In the year to 31 March 2025, total electricity connection numbers grew by 1.3%.

“However, new connections in the nine months ended 31 March 2025 have been 23.0% lower than in the comparative nine months to 31 March 2024, reflective of the broader economic slowdown,” the company said.

Electricity distributed volume for the period was down 1.5% compared with the nine months ended March 31, 2024.

Residential volumes were down 2.5% while business volumes were down 0.8%.

The company’s shares last traded at $4.23, having gained 14.6% over the past 12 months.

Timeline

• 2000 - Tangent Networks - a Vector subsidiary - becomes operational.
• 2002 - Merged with United Networks in Wellington and Auckland
• 2008 - Rebrand to Vector Communications
• 2015 - Collaborates with One NZ (Vodafone at the time) to utilise an additional 300km of its fibre network in Auckland
• 2018 – Divestment of Wellington network
• 2022 – Rebranded to Vector Fibre

As a network operator, Vector Fibre operates more than 2000km of fibre network with more than 4,000 connections, primarily serving the Auckland region.

Jamie Gray is an Auckland-based journalist, covering the financial markets, he primary sector and energy. He joined the Herald in 2011.