Benefits To Auckland Of Vector Takeover
Benefits To Auckland Of Vector Takeover Of Ngc Need Spelling Out?
How Vector’s takeover of Australian-owned NGC gas distribution company will benefit vector customers and the Auckland economy need to be spelt out.
Michael Barnett, CEO of the Auckland Chamber of Commerce, was responding to today’s confirmation that publicly-owned Vector is paying Australian Gas and Light $3 a share for two thirds of NGC in a deal worth nearly $877 million.
Today’s announcement is unclear as to whether the Vector takeover has the unanimous support of the Auckland Electricity Consumer Trust (AECT) which owns Vector.
Clearly there is an attractive cash return indicated to Vector customers, said Mr Barnett.
However, he noted that like the region’s port companies, Vector is a critical strategic asset that underpins the Auckland and New Zealand economy.
He believes it is fair to ask the AECT/Vector members to now disclose what consideration they gave to the $877 million being invested in other options with a potential similar or better long-term return.
Clearly, with electricity supply emerging as a major concern and Auckland’s economy continuing to grow at a fast pace, an obvious option for AECT/Vector was to focus its expansion plans on helping to meet the demand for new generation capacity and secure a strengthened distribution network.