The regional development trust for the East Coast-Tairawhiti region has put its electricity lines company up for sale.
Photo: RNZ / Russell Palmer
The Eastland Group, owned by Trust Tairawhiti community trust, is looking for a buyer of Eastland Network, which runs the electricity network for Gisborne, Wairoa and the East Coast, to release funds for further investment in the region .
The Group's chair, Matanuku Mahuika, said after a review of its overall financial position a sale was the best option to generate funds so it can focus on more renewable energy projects and expand Gisborne Port, which it also owns.
"A range of options were considered and the sale of the lines business, Eastland Network, was identified as the best option to underpin the future success of the company, the Trust and Tairāwhiti."
The lines company has close to 26,000 connections, revenue of $28.4 million for the year ended March 2021, and a book value of $154m.
"By divesting this asset now we can invest more to help build the energy capacity and resilience needed to power a sustainable future for the region," Mahuika said.
In addition to the lines company and port, the Eastland Group also owns several geothermal and hydro electricity generation plants, and Gisborne Airport, where work will start soon on a solar power farm.
Mahuika said there are legal protections to ensure security of supply and price.
Local investment bank Forsyth Barr will run the sale.