The two Invercargill companies taking over ownership of electricity lines company OtagoNet are looking to contribute $76.4 million each for an equal share.
Electricity Invercargill Ltd, which is owned by the Invercargill City Council-owned holding company Holdco, and The Power Company Ltd, an electricity consumer trust, announced on Monday they were buying out the third owner, Marlborough Lines Ltd.
They have owned OtagoNet since 2002.
Electricity Invercargill Ltd chairman Neil Boniface, who also heads the Invercargill City Council's finance committee, confirmed yesterday the purchase price was $152.8 million.
Both companies are going to borrow to fund the investment, but Cr Boniface said it had not yet been decided whether ownership would be 50-50.
Because the deal was a major transaction for Electricity Invercargill Ltd, the council would make the final decision on how much the company should commit.
The Power Company would o take up the remaining shares.
Cr Boniface said the transaction was the largest for Electricity Invercargill Ltd since it paid $25 million for a quarter share of OtagoNet 12 years ago.
He said he hoped details of the latest ownership structure would be finalised this month.
OtagoNet distributes power through South Otago, the Maniototo and Otago's east coast from Waitati to Palmerston.
