Electricity distributors WEL Networks Limited (WEL) and Waipa Networks Limited (Waipa) have agreed to sell their shares in UFF Holdings Limited, the holding company for Hamilton-based fibre business Ultrafast Fibre Limited (UFF) to First State Investments (FSI). 

First State Investments (FSI) has agreed to purchase WEL’s 85% majority shareholding and Waipa’s 15% shareholding for NZD 854 million (US$ 518.30 million) of which a consideration of $200 million (US$ 120.33 million) payable to WEL is deferred for 18 months from completion. The $200 million (US$ 120.33 million) deferred payment is supported by obligations enforceable against the Purchaser.

Established in 2010, Ultrafast Fibre owns and operates the fibre network in the urban areas of Hamilton, Tauranga, Whanganui, New Plymouth, Tokoroa, Hawera, Cambridge and Te Awamutu, providing access to ultra-fast broadband for more than 237,000 premises.

The transaction is subject to Overseas Investment Act consent and change of control approvals.