Two Invercargill companies will become the joint owners of an electricity lines company servicing more than than 14,800 electricity consumers in East, Central and South Otago.
Electricity Invercargill Ltd, owned by Invercargill City Council-owned holding company Holdco, and The Power Company Ltd, an electricity consumer trust, already own 49% of OtagoNet between them but will increase that to 100%, it was announced yesterday. They will buy out Marlborough Lines Ltd. The three have owned OtagoNet since 2002.
Holdco chairman and city councillor Cr Graham Sycamore would not say how much would be invested. He was coy yesterday when asked the value of OtagoNet, saying it was ''somewhere between $200 million and $300 million''.
Holdco had engaged specialists to peer review the offer and recommend to the council the level of investment Holdco should take up, he said. The Power Company had agreed to hold the remaining shares.
Cr Sycamore said he expected the reports to be completed this month.
