The sale of lines company Eastland Network is subject to OIO approval. Photo / NZME
Firstgas Group will buy lines company Eastland Network for $260 million from community trust-owned Eastland Group.
The 100 per cent acquisition is conditional on Overseas Investment Office approval. Firstgas is owned by Australian-based Igneo Infrastructure Partners. Some $80m of the proceeds will go to Trust Tairāwhiti and the
balance will stay with Eastland Group.
The asset book value of Eastland Network was $185m as at March 31.
Eastland Network is the regulated electricity lines company for Gisborne, Wairoa and the East Coast serving nearly 26,000 customers across 12,000 square kilometres. Taranaki-based Firstgas already has a gas distribution network in Gisborne. Firstgas chief executive Paul Goodeve said the company, and Igneo, would be able to fund the level of investment needed for the network.