TAKEOVER: HED: EASTERN BAY ENERGY TRUST MOVES TO SECURE LOCAL OWNERSHIP

13 Jan 2010 9:28 am

HED 13/01/2010 TAKEOVER

REL: 0928 HRS Horizon Energy Distribution Limited

TAKEOVER: HED: EASTERN BAY ENERGY TRUST MOVES TO SECURE LOCAL OWNERSHIP

News Release

13 January 2010

EASTERN BAY ENERGY TRUST MOVES TO SECURE LOCAL OWNERSHIP OF HORIZON ENERGY

Majority shareholder Eastern Bay Energy Trust today announced its intention to make a full takeover offer for all the shares in Horizon Energy Distribution Limited that it does not already own.

The trust currently holds 77.3% of the shares in Horizon, which is listed on the NZSX.

Trust chairman David Bulley said: "The trust believes that it is important that local ownership of this strategic local infrastructure asset is secured, given that there has been a recent partial takeover offer and the possibility of other offers emerging.

"We have a firm view that the local headquarters and local jobs be retained and this cannot be guaranteed if there is not local control.

"The trust's holding in Horizon has been a very good investment and it is our intention to pay a premium that better reflects the real value of the company than the $3.96 a share offer for 51% made by Marlborough Lines at the end of September."

Eastern Bay Energy Trust intends to offer minority shareholders $4 per share.

"We believe this is a fair price for all shareholders," said Mr Bulley.

The offer is dependent on majority approval of those beneficiaries responding to a postal consumer poll, as required by the trust deed.

Contact: David Bulley, chairman, Eastern Bay Energy Trust (07) 307 0893 End CA:00190127 For:HED Type:TAKEOVER Time:2010-01-13:09:28:41

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