Vector is eyeing up a possible sale of part of its smart metering division.
File image. Photo: 123RF
The lines company is inviting proposals for a "significant co-investor" in Vector Metering to help further grow the business.
Earlier this year, the Auckland based company announced it would undertake a strategic review of its smart metering business, which provides usage data from more than two million electricity and gas meters in New Zealand and Australia.
"As part of the review now underway, we are exploring the opportunity to identify a potential partner to invest in Vector Metering," Vector group chief executive Simon Mackenzie said.
"We are excited by the growth prospects and a partner may help us to capitalise on them as we continue to develop new solutions in metering and data services, so we can meet the needs of our customers in New Zealand and Australia."
The metering division is the second biggest earner for Vector after electricity distribution, contributing operating earnings of $171.6 million in the last financial year from revenue of $227m.
Vector said it was working with its advisors, Citi and Barrenjoey, which will now start the market sounding process to identify potential partners.
"Smart metering has become a critical part of the transformation and digitalisation of the energy sector around the world," Mackenzie said.
The Australian Financial Review reported Citi and Barrenjoey recently sent a document to prospective buyers ahead of a two-part auction.
It reported the metering business could be worth about $3 billion, with infrastructure funds targeted for the auction.