Councils to sell shares

North Shore City, Waitakere City and Rodney District Councils have agreed to sell their 16.2 million UnitedNetworks shares to Vector in a deal worth more than $160 million.

The councils' combined 10.7 per cent stake in the North Shore-based utility company is held through the Waitemata Electricity Trust, which is administered by the UnitedNetworks Shareholders' Society as the trustee. The councils' decisions and a recent change to the trust deed, allow the Trust to formally accept Vector's offer of $9.90 per share.

Of the $160.38 million, the Trust will retain $8.9 million to fund the cities' ongoing 'undergrounding' programmes that involve removing power poles and burying electricity cables.

The balance will be distributed among the councils based on the number of electors living in each city in October 2001, the date of the last local body elections.

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