TECT Trustees are facing the enviable task of how to invest $154.8 million dollars after the energy consumer trust sold a chunk of their Trustpower shares.

Tauranga Energy Consumer Trust sold 20 million of its shares in a move that TECT chairman Bill Holland says is not expected to affect their community grants programme or pay-outs to consumers.

TECT chairman Bill Holland. Photo: File.

The sale reduces TECT's holding in Trustpower from 33.2 per cent to 26.8 per cent after they were sold at $7.74 per share.

'It will be reinvested,” says TECT general manager Wayne Werder. 'The trustees are basically working through the best options for that at the moment, with a long term view to what the best investment options are.

'Once the trustees have made a decision, we will let people know at that point.”

TECT chairman Bill Holland says TECT Trustees retain their confidence in Trustpower.

'Trustpower continues to have excellent prospects,” says Bill, 'and for this reason we remain committed to the company long term and have ensured our influence is retained.

'Our ownership in Trustpower still accounts for more than 80 per cent of Trust assets. It is a sound business decision in line with our strategic priority of ensuring prudent management of the Trust's investment portfolio.”

The sale of 20 million shares represents 19.3 per cent of TECT's shareholding in Trustpower, and 6.4 per cent of Trustpower's shares on issue.

It also ensures TECT retains the same degree of influence around the Trustpower board's table.

The decision to diversify follows a robust decision making process driven by a need for financial prudence, and follows the Trust's Share Ownership Review, adds Bill.

The review, and subsequent consumer consultation, was held in 2013 when it was resolved that Trustees had the right to sell 6.55 per cent of the shareholding in Trustpower if they considered it in the best interests of TECT and its consumers.

'We will continue to be driven by a desire to manage our investments in a manner consistent with our Trust deed and values,” explains Bill, 'so that the funding available to benefit consumers, and future generations of consumers, will be maximised.”

Demand for Trustpower shares is strong, with allocations made to a broad range of NZ and Australian institutions and retail investors.

However, TECT has no intention of selling any further Trustpower shares in the foreseeable future, insists Bill.

Craigs Investment Partners were the sole lead manager and book-runner to the transaction, and the current hold on trading in Trustpower shares will be lifted at 2pm on Thursday.

The Tauranga Energy Consumer Trust was established under a Trust Deed in December 1993 as a consequence of the Tauranga Electric Power Board's Establishment Plan.

It is now one of New Zealand's largest energy trusts.

TECT's income and capital provides benefits to consumers during the term of the Trust. There are around 56,000 TECT consumers who are Trustpower account holders in Tauranga and the Western Bay of Plenty district.

Since 1993, TECT has returned $360 million dollars back to consumers and the community.