TEXT-NZ'S Vector to sell network to HK's Cheung Kong

(The following statement was released by the company)

WELLINGTON, April 28 - Vector Limited (VCT) today announced the sale of its Wellington electricity network to Cheung Kong Infrastructure Holdings Limited (CKI) for a price of $785 million.

"We are pleased with the outcome of the strategic review process begun in August last year, which has now resulted in this sale," said Vector Chairman Michael Stiassny.

"This price represents a positive outcome for all Vector stakeholders."

Vector CEO Simon Mackenzie said that Vector will initially apply the funds to retire debt.

"The divestment further strengthens Vector's balance sheet and positions it strongly to consider any potential infrastructure opportunities should they arise.

At the moment we have no specific investment plans but given current market dynamics, we believe it is possible that increased infrastructure investment opportunities may be available. In the meantime we continue to focus on our existing assets and business objectives" he said.

CKI is a global infrastructure owner and operator with assets and operations in Australia, (including interests in Melbourne's CBD electricity network) as well as operations in the United Kingdom, Canada, mainland China and Hong Kong.

Vector will be working with CKI over the coming months to ensure there is a smooth transition in ownership.