Firstgas buys Eastland Network for $260m

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. 

Eastland Group chair Matanuku Mahuika said the sale was an outstanding result that would release capital for the group’s projects. These included local and national renewable energy opportunities. 

Trust Tairāwhiti chair John Clarke said the trust was clear from the start that it would only sell to the right buyer on the right terms. The sale would allow it to build a diversified investment portfolio for the future.

Trust Tairāwhiti was originally founded to take over the operations of the former power board in the Gisborne region and has grown to be the regional economic development agency and tourism organisation.

- BusinessDesk