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Dec 22 (Reuters) - Trustpower Ltd said on Friday it would sell its Australian hydro-power generation assets operator GSP Energy to Meridian Energy, for A$168 million ($129.46 million), as the company focuses on its core New Zealand business.
The New Zealand energy retailer had said in August it would carry out a strategic review of GSP Energy, which Trustpower had bought in 2014 for A$72.2 million
The company said the sale would result in a significant gain compared to the purchase price for the hydro-power assets.
Meridian Energy, which is buying GSP through its unit Meridian Energy Australia Pty Ltd, said in a separate statement that the purchase fit its plans to create a group of complementary Australian renewable energy assets to support its retail business.
“Acquiring the hydro assets located in New South Wales allows the company to continue to cover its growing retail business by adding 92.4 mega-watts of hydro to its renewable generation portfolio,” Meridian chief executive Neal Barclay said.
The deal is subject to Australian foreign investment regulator approval. ($1 = 1.2977 Australian dollars) (Reporting By Rushil Dutta in Bengaluru. Editing by Jane Merriman)