Dunedin City Council Proposal on Aurora Energy

On Council’s proposal to sell Aurora Energy Limited, pay off Aurora Energy’s debt, and invest the proceeds into an investment fund.

The decision whether to sell Aurora Energy is a very important decision. Council wants to hear your views before it makes the decision on whether to sell Aurora Energy and how to use the proceeds.

This consultation process is being undertaken by Council because Aurora Energy is a 100% owned by DCHL and DCHL is 100% owned by Council. DCHL can only sell Aurora Energy if it obtains Council’s prior approval.

The question for you and what we are consulting on is:

Option One-Council’s preferred option - Sale of Aurora Energy

Council to approve a sale of Aurora Energy, on the basis that the proceeds are used:

a) To repay Aurora Energy’s debt (forecast to be $576 million by mid-2025); and

b) To establish a diversified investment fund worth many hundreds of millions of dollars to generate income for Council.

OR

Option Two- the alternative option - Keep Aurora Energy

Council to keep Aurora Energy. If Council keeps Aurora Energy, then it will likely increase in value over time, but a regular income to Council is uncertain. If Aurora Energy was to pay dividends (income) to Council, this would probably be funded by more debt.

Go to dunedin.govt.nz/aurora to make a submission and for more information and supporting documents.