Vector denies plans for partial float

By NZPA

Wednesday 18th September 2002

Auckland lines company Vector today strongly denied plans for a partial float as part of its $1.5 billion takeover of UnitedNetworks.

Chairman of the Auckland Energy Consumer Trust (AECT), Karen Sherry, in a letter to the New Zealand Herald that was made available to other media, said that the trust was not a seller of assets.

Vector said it could fund the takeover from bank debt, but "as a prudent commercial business it is also looking at other funding options".

She did not elaborate but said the trust's primary goal was to maintain and enhance the value of its investments.

A "privatisation" would involve the transfer of control of assets from the public to the private sector and the trust was on record as saying that it would not give up control of its investments, she said.

Ms Sherry said the trust was constrained in what it could say by security rules and regulations and would comment further when allowed.

Yesterday, the Herald reported that Vector planned to float part of the company after it took over UnitedNetworks, an action that appeared to defy anti-privatisation pledges made by some trust members including Ms Sherry.

The Herald said the IPO would be 25 percent of the company. It reported Vector would raise $350 million in capital notes that would give noteholders first rights "at next year's float".

The paper also quoted trust member John Collinge as saying that a float, so long as board control remained with the trust, was not a partial privatisation. This would not happen if, for instance, 24.9 percent was floated.

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