Sharechat Logo

Orion spends up over the Tasman

By Chris Hutching

Friday 21st February 2003

Text too small?
Christchurch City Council-owned electricity lines company Orion has averaged out its losses in Australian-listed Energy Developments by buying more shares and lifting the amount it has spent to $58 million.

But the total stake is now worth only $40 million, thanks to a falling EDL share price and rising New Zealand dollar.

The latest purchases take Orion's holding to 14.99%. Infrastructure company, listed Infratil, owns another 12.87% and the two companies have effective control of EDL while proclaiming independence of each other to avoid breaching takeover threshold rules that come into effect at 19.9%.

Infratil's appointee to the board includes chairman Bruce Harker, while managing director Chris Laurie has just taken over the job after changed domestic circumstance prompted him to end 15 years at the helm of Orion and move over the Tasman.

Orion started buying EDL under Mr Laurie's tenure last July when its share price was $A3.60 compared with the current $A2, up on the $A1.90 of last week.

Orion's strategy is to repeat the strong performance it enjoyed when it bought gas company Enerco a few years ago and made a $200 million profit.

Half of that money has been set aside as a special economic development fund for pet projects identified by the city council.

But EDL is beset with technical problems in one of its engines used in landfill gas power generation.

The company says the problems are under control.

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

MARKET CLOSE: Blue-chip stocks Meridian, A2 lead market lower
NZ dollar rises on Brexit hopes, rate cut reassessment
Three not failing, just needs a new owner - MediaWorks CEO
Major investors back new CBL class action targeting directors
Rip Curl purchase a done deal on Kathmandu proxies alone
Comvita chair Neil Craig eyes the exit once he finds a new CEO
Mercury raises guidance on increased storage, high spot prices
Eroad reports strong 3Q sales growth, eyes ASX listing
MediaWorks puts TV business on the block
NZ dollar benefits as preliminary Brexit deal improves risk appetite

IRG See IRG research reports