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Eastern Bay Energy Trust seeks court ruling on deed, halts Horizon takeover

Wednesday 10th February 2010

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Eastern Bay Energy Trust, which owns 77.3% of Horizon Energy Distribution, has suspended its takeover offer for the remaining shares while it seeks a High Court ruling on its rights under its trust deed.

The decision to halt the mop-up of shares comes after Trustees of Matata-based Te Mana O Ngati Rangitihi Trust sought an injunction seeking to prevent votes being counted in a poll of Horizon consumers.

Eastern Bay wants clarification of its powers under the trust deed to acquire more shares in the utility. The Rangatihi trust had claimed that information sent out with the poll documents was inadequate.

Minority shareholders of Horizon had been offered $4 a share for the local monopoly electricity network. That exceeded the $3.96 a share hostile offer last year from Blenheim-based Marlborough Lines, which Eastern Bay rejected.

Shares of Horizon last traded at $3.90 and have climbed 20% in the past month.

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