New Zealand Gazette – 1994 – No. 128

Page 3842

✨ Financial Statements Notes



3842 NEW ZEALAND GAZETTE No. 128

NOTES TO THE FINANCIAL STATEMENTS

26. SEGMENTAL INFORMATION

The Corporation operates predominantly in one industry, the generation and wholesale marketing of electricity. Its operations are carried out predominantly in New Zealand and are therefore within one geographical segment for reporting purposes.

27. POST - BALANCE DATE EVENTS

Trans Power New Zealand Limited (Trans Power), a wholly owned subsidiary of the Corporation, was sold to the Crown on 1 July 1994. No gain or loss arose on disposal.

A part settlement of the sale took place on 1 July 1994, with the Corporation receiving $1.2 billion from the Crown. The final settlement price was determined on 14 October 1994 and resulted in a payment from the Crown of $8,120, based on the net book value of Trans Power as disclosed in the audited accounts as at 30 June 1994. As part of the sale process the following additional transactions were completed on 1 July 1994:

  • Trans Power repaid $1.588 billion of internal advances to the Corporation,

  • the Corporation extinguished borrowings of $1.588 billion through an in-substance defeasance with the Crown whereby the Crown assumed the primary obligation for the following debts:

    NZD million
    NZD June 1996 domestic bonds 880.8
    USD200m Syndicated bank loan due in May 1995 347.4
    USD200m Notes due in July 1996 359.9
    Total 1588.1

The debts were defeased at net book value and there was no defeasance gain or loss.

The Corporation redeemed preference shares of $800 million issued to the Crown and paid accumulated dividends on them amounting to $437 million.

As a first step to restructuring of the Balance Sheet since Trans Power separation, the Corporation intends to pay a special dividend of approximately $600 million to the Crown in the year to 30 June 1995.



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✨ LLM interpretation of page content

🌾 Electricity Corporation of New Zealand Limited Financial Statements (continued from previous page)

🌾 Primary Industries & Resources
Financial statements, Segmental information, Post-balance date events, Electricity generation, Trans Power sale