AMP Capital expands energy holdings
AMP Capital plans to acquire 42 per cent in Powerco NZ Holdings, entering into an agreement with Brookfield Infrastructure to invest NZ$525 million.
AMP Capital made the investment into New Zealand's second largest electricity and gas distribution company on behalf of a number of clients and managed funds, including its own Infrastructure Equity Fund and Core Infrastructure Fund.
AMP Capital global head of infrastructure Scott Davies said Powerco had further growth opportunities which fitted into its strategy to manage and improve assets under its management.
"The strength of the Powerco business and the New Zealand economy makes this an attractive investment for our managed funds and clients," he said.
"This transaction offers them exposure to a geographically diversified quality asset in the core regulated utility sector."
Powerco supplies electricity and gas to over 426,000 consumers in New Zealand's North Island, representing 16 per cent of total electricity connections and 40 per cent of total gas connections in New Zealand.
The acquisition is conditional on approval from the New Zealand Overseas Investment Office, with a response expected in late 2013.
Earlier this month, AMP Capital agreed to acquire 50 per cent in a Sydney office development.
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