TAKEOVER: HED: Horizon Energy Receives Takeover Notice

13 Jan 2010 10:06 am

HED 13/01/2010 TAKEOVER

REL: 1006 HRS Horizon Energy Distribution Limited

TAKEOVER: HED: Horizon Energy Receives Takeover Notice

13 January 2010

HORIZON ENERGY RECEIVES TAKEOVER NOTICE

Horizon Energy Distribution Limited has received today a Notice of Intention to Make a Takeover Offer ("Takeover Notice") under the Takeovers Code from the Eastern Bay Energy Trust. Under the terms set out in the Takeover Notice, the Eastern Bay Energy Trust (acting through its trustees) proposes to offer to purchase 100% of the ordinary shares in the Company. The consideration offered by the Eastern Bay Energy Trust is $4.00 per share.

The Eastern Bay Energy Trust has stated in the Takeover Notice that it "will be undertaking consumer consultation and that the Offer itself will only be made following receipt, and due consideration, of responses to such consultation." The proposed offer, if made, is subject to conditions, including a minimum 90% shareholding condition, is intended to commence on 13 February 2010 and is indicatively intended to be open for acceptance until 15 March 2010.

The Eastern Bay Energy Trust already holds 77.29% of Horizon Energy and is seeking to acquire the remaining shares in the Company.

The Takeover Notice sets out the full terms and conditions of the intended offer. A copy of the Takeover Notice has been provided to the NZX and to the Takeovers Panel.

The Company's Board of Directors, all of whom are independent, is to consider the offer. The Board will appoint an independent adviser to prepare a report on the merits of the offer in accordance with the requirements of the Takeovers Code.

The Company will respond to the Takeover Notice in accordance with its obligations under the Takeovers Code. This will include preparation and delivery to shareholders of a Target Company Statement incorporating the independent advisers' report and a directors' recommendation.

For further details please contact:

Mr Rob Tait CHAIRMAN Horizon Energy Distribution Limited +64 7 5711566 +64 21 812577

END End CA:00190135 For:HED Type:TAKEOVER Time:2010-01-13:10:06:24

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