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

 

Fast Track: TPP Negotiations Set To Accelerate, Groser Says

Negotiations for the Trans-Pacific Partnership will accelerate in July, with New Zealand officials working to stitch up a deal by the month's end, according to Trade Minister Tim Groser. More>>

ALSO:

Floods: Initial Assessment Of Economic Impact

Authorities around the region have compiled an initial impact assessment for the Ministry of Civil Defence, putting the estimated cost of flood recovery at around $120 million... this early estimate includes social, built, and economic costs to business, but doesn’t include costs to the rural sector. More>>

ALSO:

Food: Govt Obesity Plan - No Tax Or Legislation

Speaking to Q+A’s Corin Dann this morning, health minister Jonathan Coleman said tackling obesity was at the top of the Government’s priority list, but there was “no evidence” a sugar tax worked, and further regulation was unnecessary. More>>

ALSO:

Treasury Docs On LVR Policy: Government Inaction Leads To Blurring Of Roles

The Treasury wouldn’t have had to warn the Reserve Bank to stick to its core functions if the Government had taken prompt and substantial measures to rein in skyrocketing Auckland house prices, Labour’s Finance spokesperson Grant Robertson says. More>>

ALSO:

Final EPA Decision: Tough Bar Set For Ruataniwha Dam

Today’s final decision by the Tukituki Catchment Board of Inquiry is good news for the river and the environment, says Labour’s Water spokesperson Meka Whaitiri. “Setting a strict level of dissolved nitrogen in the catchment’s waters will ensure that the dam has far less of an impact on the Tukituki river." More>>

ALSO:

"Don’t Give Up":
End Of Kick-Start Hits KiwiSaver Enrolments

ANZ said new enrolments for the ANZ KiwiSaver Scheme had dropped by more than 50% since the Government announced an immediate end to the $1,000 KiwiSaver kick-start incentive in the Budget last month. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news