AMP Capital acquires NZ power asset

Not for release or distribution in the US

AMP Capital has entered into an agreement to acquire 42 per cent of New Zealand’s second largest electricity and gas distribution company, Powerco NZ Holdings Limited, from Brookfield Infrastructure for NZ$525 million which represents an enterprise value of approximately NZ$1 billion.

This investment has been made on behalf of a number of AMP Capital clients and managed funds, including a significant investment by the AMP Capital Infrastructure Equity Fund (IEF) and the AMP Capital Core Infrastructure Fund (CIF).

AMP Capital Global Head of Infrastructure Scott Davies said: “AMP Capital brings a wealth of global expertise in the regulated utility sector and we are very pleased with this investment.

“We are an experienced asset manager of critical infrastructure assets and have a long term strategy to manage and improve the assets under our management. We see significant opportunity for further growth in the business, with Powerco supplying key population growth regions in New Zealand.

“The strength of the Powerco business and the New Zealand economy makes this an attractive investment for our managed funds and clients. This transaction offers them exposure to a geographically diversified quality asset in the core regulated utility sector.

“We’re committed to the New Zealand market where AMP Capital has been managing investment funds since the 1920s,” Mr Davies said.

Powerco supplies electricity and gas to more than 426,000 consumers (323,093 electricity and 103,313 gas connections) in New Zealand’s North Island, representing 16 per cent of the total electricity connections and 40 per cent of the total gas connections in New Zealand.

AMP Capital’s internal origination and asset management team led the deal team which included IEF Fund Manager Michael Cummings, who served on the Board of Powerco from 2008 to 2012.

The acquisition is conditional upon approval from the New Zealand Overseas Investment Office and is expected to be completed by the end of 2013.

About AMP Capital

AMP Capital is a leading investment house managing over A$130 billion (as at 31 March 2013) on behalf of clients through a global network of offices in developed and emerging markets.

It has a heritage and strength in real estate and infrastructure, and specialist expertise in fixed income, equities and multi asset solutions.

AMP Capital is one of the most experienced global infrastructure managers with more than 20 years’ experience and over 80 infrastructure (equity and debt) investments globally since 1988. AMP Capital was one of the first to invest in infrastructure when it participated in the financing of the Sydney Harbour Tunnel in Australia in 1988.

AMP Capital today manages unlisted and listed infrastructure investments in Asia, Europe, North America, Australia and New Zealand.

AMP Capital is a subsidiary of AMP Limited. Established in 1849, AMP has more than 160 years of experience providing financial services, and is one of Australia's largest retail and corporate pension providers.

About Powerco

Powerco is New Zealand's second largest electricity and gas distribution company, with a geographically diversified 37,058 kilometre network that spreads across the upper central and lower central areas of New Zealand’s North Island.

Powerco services over 426,000 connections (323,000 electricity and 103,313 gas connections), representing 16 per cent of the total electricity connections and 40 per cent of the total gas connections in New Zealand.

Powerco’s electricity networks are in Western Bay of Plenty, Thames, Coromandel, Eastern and Southern Waikato, Taranaki, Wanganui, Rangitikei, Manawatu and the Wairarapa. Its gas pipeline networks are in Taranaki, Hutt Valley, Porirua, Wellington, Horowhenua, Manawatu and Hawke’s Bay.


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