NUKUALOFA (Pacnews) — Anti-government riots in Tonga have prompted New Zealand electricity lines company Northpower to pull out of negotiations to buy Tongan electricity company Shoreline Power.
Last August Northpower confirmed it was interested in buying Shoreline, previously the state-owned Tonga Electricity Power Board. Marketing director Darren Mason said then that the Northland company had a relationship with Tonga and used Tongan linemen in its business.
Shoreline was given on a long-term lease to Tongan King George V by the royal controlled government eight years ago, when he was crown prince. King George had been asking NZ $46 million ($31 million) for Shoreline.
The government was intending to buy Shoreline from him and onsell it.
Northpower chairman Warren Moyes said Northpower recognized that it was untenable to continue the sales process after the riots in November.
“Both parties couldn’t complete the sales process given the riots and the ensuing political drama,” he said.
Shoreline’s offices were burnt down in the rioting, which left seven people dead. Much of the central business district of Tonga’s capital, Nuku’alofa, was destroyed in the unrest.
Moyes said Northpower was still in touch with the Tongan government and was interested in providing advice and management services to Shoreline.
It was awaiting a reply from the government on the matter, he said.