AMP Capital has entered into an agreement to acquire 42 per cent of New Zealand electricity and gas distribution company Powerco NZ Holdings from Brookfield Infrastructure for NZ$525 million.
The agreement represents an enterprise value of approximately NZ $1 billion and includes a significant investment by the AMP Capital Infrastructure Equity Fund and the AMP Capital Core Infrastructure Fund.
"We (AMP Capital) are an experienced asset manager of critical infrastructure assets and have a long-term strategy to manage and improve the assets under our management," AMP Capital global head of infrastructure Scott Davies said.
Related News: Open your eyes to small caps
He said the strength of the Powerco business and the New Zealand economy would provide investors with exposure to a geographically diversified quality asset in the core regulated utility sector.
As New Zealand's second largest electricity and gas distributor, Powerco services more than 426,000 consumers, representing 16 per cent of the total electricity connections and 40 per cent of the total gas connections in New Zealand, AMP Capital stated.
The acquisition is conditional upon approval from the New Zealand Overseas Investment Office and is expected to be completed by the end of this year.