Thursday, 22 February 2018

Announcement

TRANSACT: TPW: Trustpower announces sale of GSP Energy

22 Dec 2017 08:34NZX
Trustpower announces completion of strategic review and sale of Australian
hydro generation assets

As announced to the market on 30 August 2017, Trustpower has been undertaking
a strategic review of its Australian hydro generation assets, which includes
the Hume, Burrinjuck and Keepit hydro generation assets owned by GSP Energy
Pty Ltd ("GSP Energy").

Trustpower is pleased to announce the completion of the strategic review,
which has culminated in the sale of GSP Energy to Meridian Energy Australia
Pty Limited a subsidiary of Meridian Energy Limited ("Meridian") for A$168
million (pre capital gains tax and other adjustments). The sale will result
in Trustpower realising a significant gain compared to the purchase price for
GSP Energy of A$72.2 million in July 2014, which also included the Blayney
and Crookwell wind farms that were subsequently transferred to Tilt.

CEO Vince Hawksworth said "We came to the view that while the assets in GSP
Energy were generating solid cash flows, they were no longer a strategic fit
for Trustpower without a broader Australian platform. Realising value by
selling GSP Energy, including a material gain on our purchase price in 2014,
is an excellent outcome for Trustpower".

Chairman Paul Ridley-Smith added "the Board and Management are committed to
our New Zealand focused growth strategy and the sale of these assets is a
positive step towards that goal. The Board appreciates the hard work
undertaken by Trustpower staff and the employees of GSP Energy to achieve a
pleasing outcome to the strategic review process".

The sale is conditional upon approval under the Australian Foreign
Acquisitions and Takeovers Act 1975 (Cth) and the implementation of
appropriate transition arrangements. Settlement is scheduled to occur on or
after 29 March 2018.  Trustpower will be working with Meridian in the coming
months to ensure a smooth transition of the assets upon completion.

Forsyth Barr and Minter Ellison acted as Trustpower''s financial and legal
advisors respectively.
End CA:00312400 For:TPW    Type:TRANSACT   Time:2017-12-22 08:34:33
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