Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Meridian to sell metering business Arc Innovations to Vector

Meridian to sell metering business Arc Innovations to Vector

By Suze Metherell

Aug. 25 (BusinessDesk) - Meridian Energy, the government-controlled energy company, will sell its metering assets and services business, Arc Innovations, to Vector, the Auckland lines company, as it focuses on its retail business.

The energy companies are yet to disclose a price on the conditional sale, which is dependent on Commerce Commission approval. The sale came after a review of Meridian's metering services requirements as it focuses on its core energy retailing service, the Wellington-based company said in a statement.

"We're clear on Meridian's future direction as a retailer," chief executive Mark Binns said. "We want to focus on improving customer experience and owning electricity meters and providing metering services to the wider market is not integral to that."

Vector will take over 135,000 customer connections, mainly in Canterbury and Hawkes Bay as well as Meridian's contracts to provide smart metering services to all major retailers.

The sale of Arc Innovations comes after Meridian sold its Californian solar plant, wrapping up its exit from the US market in May. The plant was the biggest asset of Meridian’s US subsidiary, which owed the parent $27 million in related party loans as at June 30 last year. Meridian wore a $2 million impairment charge on the loan in the 2013 financial year, having written down the loan by $27.4 million a year earlier.

Shares of Meridian rose 0.8 percent to $1.28 and have gained 23 percent this year, outperforming the NZX 50 Index's 9.4 percent gain. The stock is rated an average of "buy" according to six out of seven analysts surveyed by Reuters, with a median price target of $1.60.

Shares of Vector were unchanged at $2.60 and have gained 1.2 percent this year, under-performing the benchmark index's gain. The stock is rated an average of "hold" according to six analysts as surveyed by Reuters, with a median price target of $2.75.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

By May 2018: Wider, Earlier Microbead Ban

The sale and manufacture of wash-off products containing plastic microbeads will be banned in New Zealand earlier than previously expected, Associate Environment Minister Scott Simpson announced today. More>>

ALSO:

Snail-ier Mail: NZ Post To Ditch FastPost

New Zealand Post customers will see a change to how they can send priority mail from 1 January 2018. The FastPost service will no longer be available from this date. More>>

ALSO:

Property Institute: English Backs Of Debt To Income Plan

Property Institute of New Zealand Chief Executive Ashley Church is applauding today’s decision, by Prime Minister Bill English, to take Debt-to-income ratios off the table as a tool available to the Reserve Bank. More>>

ALSO:

Divesting: NZ Super Fund Shifts Passive Equities To Low-Carbon

The NZ$35 billion NZ Super Fund’s NZ$14 billion global passive equity portfolio, 40% of the overall Fund, is now low-carbon, the Guardians of New Zealand Superannuation announced today. More>>

ALSO:

Split Decision - Appeal Planned: EPA Allows Taranaki Bight Seabed Mine

The Decision-making Committee, appointed by the Board of the Environmental Protection Authority to decide a marine consent application by Trans-Tasman Resources Ltd, has granted consent, subject to conditions, for the company to mine iron sands off the South Taranaki Bight. More>>

ALSO: