Southland Power Trust (SEPSCT) announced today that it has entered into a sale and purchase agreement to acquire, through its wholly-owned subsidiary The Power Company Limited (TPCL), the remaining interests in the OtagoNet Joint Venture, Lakeland Network Limited, and PowerNet Limited that it does not already hold.

SEPSCT, through TPCL, already owns 75.1% of OtagoNet and Lakeland, and 50% of PowerNet. The acquisition will be completed by Last Tango Limited (a wholly-owned subsidiary of TPCL) purchasing 100% of the shares in Pylon Limited, which holds the remaining interests in OtagoNet, Lakeland and PowerNet, from Electricity Invercargill Limited (EIL), a subsidiary of Invercargill City Holdings Limited (ICHL).

Carl Findlater, Chair of SEPSCT, said the decision was motivated by the Trust’s commitment to support increasing demand for decarbonisation and electrification across the region.

“The Trust is committed to protecting electricity consumers’ interests and supporting the growing demand for electrification of the Southland and Otago economies through strategic investment. This acquisition aligns with that vision and ensures the southern region’s vital infrastructure remains in local hands.

“In addition, these acquisitions will enable us to streamline our operations, providing greater focus and economies of scale – all of which will benefit the Trust’s beneficiaries and southern region communities,” he said.

TPCL is committed to working closely with all stakeholders to ensure a smooth transition, with the operations of OtagoNet, Lakeland and PowerNet remaining unchanged. PowerNet will continue to manage EIL’s network under a  long-term network management agreement.