Nova Energy's stake in King Country Energy reportedly in play

Tuesday 29th September 2015

Todd Corp's energy retailer, Nova Energy, is reported to be seeking a buyer for its 54.1 percent stake in King Country Energy, the central North Island electricity generator and retailer.

The Australian Financial Review's 'Street Talk' column, often a reliable source of capital markets gossip on both sides of the Tasman, reports that Goldman Sachs has been appointed to find a buyer for its 54.1 percent stake in KCE, whose shares trade on the Unlisted platform.

Some 20 percent of KCE is owned by the King Country Electric Power Trust, with another 6,000 small investors holding the balance of KCE shares.

A buyer for the Nova stake would also have to make a takeover bid for the remaining shares, although the local trust could block a full takeover if it chose to, since its 20 percent stake could prevent the 90 percent acceptances required to trigger compulsory acquisition.

A Nova spokesman said the company did not comment on speculative reports.

The company has some 18,000 customers in the King Country area and operates five hydro-electric power stations.

BusinessDesk.co.nz

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