HUNTER Water will sell its subsidiary Hunter Water Australia to a group of senior managers and private investors, and offload an associated laboratory business.
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The state-owned water utility announced in August its board had resolved to sell Hunter Water Australia, which provides water treatment engineering, surveying and laboratory services.
It now expects the sale to be completed by December 31, which it is understood has raised more than $7 million that would be reinvested into Hunter Water's network.
The buyers are senior Hunter Water Australia staff and investors, while Australian Laboratory Services will purchase the organisation's laboratory operations.
Under the deal, Australian Laboratory Services' parent company ALS Limited will provide Hunter Water with laboratory services in the long term, and would be required to retain facilities in Newcastle for "at least the medium term" to protect jobs, the water utility said in a statement.
Nearly a dozen Hunter Water Australia staff made redundant would be able to go into a "redeployment pool", where they would be offered a permanent position with Hunter Water if they can't find another job within six months.
In the statement, Hunter Water managing director Kim Wood said the two transactions were a "good outcome".
"The investments in HWA ensure both businesses remain locally based while allowing Hunter Water to focus on its core responsibilities of delivering water and waste water services," he said.
