Wednesday 13th January 2010
|Text too small?|
Eastern Bay Energy Trust is to make a full takeover bid for the local monopoly lines company, NZX-listed Horizon Energy Distribution, the trust announced this morning.
EBET will offer $4 a share for the 22.7% of Horizon that it does not already own, just above the $3.96 offered in a failed bid by Marlborough Lines to acquire 51% of Horizon in September last year.
The trust's stated justification for the bid rests on the importance of parochial ownership to preserve local jobs and wealth. The Horizon board will be responding with a Target Company statement ahead of the intended February 13 opening date for the offer.
A postal poll of trust consumers will also be required prior to the bid proceeding.
EBET chairman David Bulley said the trust believes "it is important that local ownership of this strategic local infrastructure asset is secured, given that there has been a recent partial takeover offer and the possibility of other offers emerging.
"We have a firm view that the local headquarters and local jobs be retained and this cannot be guaranteed if there is not local control. "
Horizons chairman Rob Tait said directors had yet to consider the offer and would appoint an independent adviser to report on its merits.
The Horizon share price jumped 24 cents a share in early trading this morning to $3.29, having last traded on December 29 at $3.05. Horizon shares have traded between $2.80 and $3.51 in the last 12 months.
No one from Marlborough Lines was immediately available for comment on whether the company had given up its interest in acquiring a stake in Horizon.
No comments yet
Horizon Energy acquires 3 businesses for $5.25 million
Horizon Energy blames takeover costs for profit downgrade
Marlborough Lines seeks to lift Horizon stake
Marlborough Lines close to 10% target in Horizon
New twist in Horizon takeover saga as panel investigates directors
Eastern Bay Energy Trust seeks court ruling on deed, halts Horizon takeover
Horizon Energy shareholders advised to reject takeover offer
Marlborough Lines makes bid for control of Horizon at 34% premium
Two listed lines companies make the grade
Special Report: Electricity - Worth A Flutter?