King & Wood Mallesons (KWM) has advised Vector Limited (Vector) on the 50% sale of its New Zealand and Australian metering business, Vector Metering, to investment vehicles managed and advised by Queensland Investment Corporation (QIC). The sale transaction valued Vector Metering at an enterprise value of NZ$2.5b and resulted in gross proceeds to Vector of NZ$1.7b.
The sale marks a significant milestone for Vector, a company at the forefront of New Zealand’s energy transition, and supercharges the future of Vector Metering, which is backed by industry-leading data technology. With its leading position in New Zealand and the joint venture partnership with QIC, a significant opportunity now exists to further cement Vector Metering’s position as a key player in the Australian energy sector.
KWM’s role in the deal included providing advice on the Australian law elements of the separation of Vector's smart metering business from the remainder of Vector's electricity and gas distribution business, and also advising on the wider sale transaction. In New Zealand, Vector was advised by Chapman Tripp on the sale transaction and by Harmos Horton Lusk on the joint venture and governance arrangements. Citi and Barrenjoey were joint financial advisors for Vector.
The KWM team was led by Partners, Mark Upfold (Energy, Resources and Infrastructure), Jonathan Grant (Mergers & Acquisitions), Intan Eow (Mergers & Acquisitions), Cheng Lim (Mergers & Acquisitions), Caroline Coops (Mergers & Acquisitions), Rebecca Finkelstein (Energy, Resources and Infrastructure), Ruth Rosedale (Dispute Resolution) and Senior Associate Josh Thorneycroft (Energy Resources and Infrastructure) with support by Special Counsels, Clifford Sandler (Mergers & Acquisitions), Jason Kwan (Mergers & Acquisitions), Luke Mulcahy (Mergers & Acquisitions) and Solicitors, Campbell Burns-McRuvie (Mergers & Acquisitions), Madeline Close (Mergers & Acquisitions), Claudia Hollings (Mergers & Acquisitions), Tiffany Yang (Energy, Resources and Infrastructure), Josh Everett (Energy, Resources and Infrastructure) and Darcy Harwood (Dispute Resolution).
Commenting on the deal, Partner, Jonathan Grant said:
“We are grateful for the opportunity to work with Vector Limited on this significant sale which will strengthen both the New Zealand and Australian energy markets. A big congratulations to everyone involved.”
This landmark deal is yet another example of how KWM continues to partner with our clients to shape the energy transition, globally.
