AECT Investment Increased - 27 February 2004 Print
The Auckland Electricity Consumer Trust (AECT) is pleased to announce its investment in network infrastructure company, Vector Limited, has increased by up to $300 million since November 2002 when the company acquired UnitedNetworks.

The value of the investment is based on the results released today by Vector for the six months to 31 December 2003. If valuation multiples based on standard industry practice, recent transaction data and current peer company trading results are applied to Vector's financial metrics, AECT is of the view that in the range of $150 million to $300 million in value has been added to Vector as a result of the UnitedNetworks purchase, successful integration and ongoing subsequent management

In its half-year result, Vector announced a 44.3% increase in its net surplus after tax of $29.3 million, compared to $20.3 million for the previous period. The strong result also included debt repayment of more than $40 million.

"This is a first-rate result and it clearly shows the benefits of acquiring UnitedNetworks and the subsequent opportunities this has created for operational efficiencies and business growth," said AECT Chairman, Warren Kyd.

Mr Kyd added that the current result is an outstanding example of a successful integration of two organisations.

"We congratulate Vector's staff and management for completing the integration so quickly and so successfully," he said.

"Vector is now a significantly larger organisation than it was, and it is delivering excellent results to its shareholders and customers alike."

Vector is wholly owned by the AECT on behalf of its income beneficiaries who are those customers of Vector Electricity connected to its network in Auckland City, Manukau City and parts of Papakura.

Mr Kyd says the Trust's beneficiaries will welcome the substantial increase in their investment and he is confident they will see further growth in the value as the management and Board of Vector continue to enhance the core businesses and pursue other opportunities to grow the business.

Contact:
Chairman
Warren Kyd ph: 0274 462 489