April 28 2008 - Vector New Zealand's biggest electricity and gas distributor, has agreed to sell its Wellington power network to Hong Kong-based Cheung Kong Infrastructure for NZ$785m (US$614m).

According to Bloomberg, the sale is subject to shareholder approval and a clearance from the Overseas Investment Office, Auckland-based Vector said today in a statement to the New Zealand stock exchange. The deal will settle on 1 July and represents a profit of about NZ$195m, the company said.

Vector's biggest assets are its power and gas networks in Auckland, the country's largest city, and pipelines delivering natural gas around the nation's North Island. Proceeds from the sale will be used to reduce debt, positioning the company to buy other assets in New Zealand should they become available.