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

 

Crown Accounts: Government Ekes Out Six-Month Surplus Of $9M

The New Zealand government eked out a tiny surplus in the first six months of the fiscal year as growth in domestic consumption lifted the goods and services tax take, while uncertainties over the Kaikoura earthquake costs meant expenses were less than expected. More>>

ALSO:

Almost 400 Jobs: Shock At Cadbury's Dunedin Factory Closure

Workers at Cadbury in Dunedin are reeling after learning this morning that the iconic Cadbury factory is to close, with the loss of almost 400 jobs... “The company had reported it was doing well and this has come out of the blue,” says Chas. More>>

ALSO:

Transport: Boards Of Inquiry For Auckland Roading Projects

Boards of Inquiry have been appointed to decide on two significant Auckland roading projects in a move which will get a decision by the end of the year, Environment Minister Dr Nick Smith and Conservation Minister Maggie Barry announced today. More>>

ALSO:

Three Months On: Quake Reciovery In Kaikōura And Elsewhere

Three months after the magnitude 7.8 earthquake on 14 November, encouraging recovery progress is being made in affected communities. More>>

ALSO:

Jetstar, Qantas For Govt Transport: Government Still In Talks With Air NZ

The government is still negotiating with national carrier Air New Zealand in a cross-agency air travel contract that will add a number of new airlines to the list of approved flyers. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news