16 Jul 2008

Capital power network sale approved

3:37 pm on 16 July 2008

The Government has approved the sale of Wellington's electricity network to a Chinese investor.

Power lines company Vector applied to the Overseas Investment Office to sell the network for $785 million.

Consent has been granted for Cheung Kong Infrastructure Holdings and Hong Kong Electric Holdings to buy the network.

The companies form part of the Cheung Kong group, which is the largest business conglomerate in Hong Kong.

Finance Minister Michael Cullen says he is confident the buyers have met all of the Overseas Investment Act criteria.

Dr Cullen says the network, which serves Lower Hutt, Upper Hutt, Porirua and Wellington, does not involve sensitive land.