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Take-over offer for South Eastern Utilities

By Phil Boeyen, ShareChat Business News Editor

Thursday 16th November 2000

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Christchurch-based rural services' company, Pyne Gould Corporation, has announced a take-over bid for the 49.7% of South Eastern Utilities which it does not already own.

Pyne Gould is offering $1.07 per share, a 14 cent premium to SEU's Thursday closing price of 93 cents.

PGC says the takeover is conditional upon acceptances of at least 90% of the SEU shares on issue. It is also condition of the offer that from today until offer closes SEU does not declare or pay any dividends, bonuses or other distributions.

The offer is due to be made on December 7th and remain open for acceptance until at least the 16th of January.

PGC chairman, Sam Maling, says the takeover offer is the most efficient manner in which the return of SEU's cash to its shareholders can be achieved.

SEU is the cashed-up former owner of Wairarapa Electricity. When it announced its full-year result in August of $2.5 million, from interest on cash deposits, it said it was close to concluding negotiations on three investment opportunities.

Earlier this year the company bought purchased 20% of Christchurch-based software development company, ViaNet.

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