In a press release, Vector said that, as part of its cornerstone shareholding, the company has conditionally agreed to participate in a further subsequent share issue of approximately NZD25 million to the level of approximately NZD5 million, if NZ Windfarms (NWF) decides to make such an issue before the end of 2009.
Vector said that NWF, which sells sustainably generated electricity from wind turbines, is currently developing the first of what will be a portfolio of wind farms that the company will own and operate. NWF specializes in building smaller, high-return wind farms that generate electricity for the local region.
NWZ has also announced its intention to make a share issue of NZD75 million to fund the ongoing development of its Te Rere Hau wind farm joint venture and to develop further wind farm assets.
Vector chairman Michael Stiassny said: For Vector, this investment signifies our commitment to growing our company in a sustainable way for the benefit of all our stakeholders. The future of energy supply and management is changing rapidly and we see innovative solutions such as what NZ Windfarms is doing as critical to that future.
Vector said that its investment is subject to certain conditions to be fulfilled by NWF, including the cornerstone placement and the share issue being approved by NWF’s existing shareholders. Once complete, Vector would have two places on NWF’s board.
