17 Feb 1999
Alliant International New Zealand Limited, a subsidiary of the US-based utility company, Alliant Energy Corporation (LNT-N), and Infrastructure & Utilities NZ Limited ("Infratil"), have today (17/2/99) signed an agreement to work together on future electricity investments in New Zealand.
It is Infratil's intention to sell 15.4 million of its TrustPower convertible notes to Alliant at a price equivalent to $2.86 per share.
Accordingly, Alliant is required to observe a notice & pause period under Listing Rule 4.5.2 of the New Zealand Stock Exchange. Alliant will file this notice with the Stock Exchange and TrustPower.
Upon completion of the intended sale Infratil will hold 25.8 per cent of TrustPower and Alliant will hold 8.6 per cent of TrustPower.
Infratil's Chairman, Mr Kevin O'Connor, said that the agreement with Alliant was the result of many months consultation between the two companies. "The agreement creates a balanced partnership. Alliant's extensive operational ability together with Infratil's New Zealand electricity industry knowledge and investing experience will bring a useful range of skills to our joint investing capabilities."
Alliant Energy Corporation was formed last year through the merger of three neighbouring US energy companies - IES Utilities serving Iowa, Interstate Power Company serving northern Iowa, southern Minnesota and Illinois, and Wisconsin Power & Light Company, serving Wisconsin and parts of Illinois.
Alliant Corporation manufactures and markets electric energy from 18 generating facilities with a total output of nearly 5,000 megawatts, enough to light 1.5 million homes. It has more than 850,000 electricity customers and 360,000 natural gas customers and approximately 6,000 employees. Assets to year-end 1997 exceed $US5 billion.
The Managing Director of Alliant, Mr Chris Lindell, said Alliant can bring specific skills to the retailing and generation side of the electricity business. "We have extensive experience of providing economically priced energy to low population density areas similar to New Zealand
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