Eastern Bay Energy Trust to make formal takeover for Horizon Energy
The trust will offer to buy the remaining shares at $4.41 apiece.
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Horizon Energy Distribution's [NZX: HED] biggest shareholder Eastern Bay Energy Trust will make a formal takeover bid at 6.3% premium, having sewn up a deal with the Bay of Plenty lines company's second-biggest shareholder that takes its ownership above the threshold required to mop up minority investors.
The trust will offer to buy the remaining shares at $4.41 apiece, a premium to the last trading price of $4.15, as part of broader agreement it reached to buy Marlborough Lines' 14% stake in Horizon. That deal takes the trust's holding above the 90% ownership level needed to enforce mandatory sales under the Takeovers Code.
Eastern Bay Energy Trust intends to make the offer on June 29 for a July 30 close, and it will enforce the mop-up provisions as soon as it acquires Marlborough Lines' shares.
The shares jumped 32% after the trust announced the pre-bid agreement with Marlborough Lines and foreshadowed the takeover bid.
In November, Horizon reported a 58% slump in first-half profit after a Commerce Commission ruling cut the amount the lines company can earn from its regulated business as part of an out-of-court settlement for over-charging in 2012. The Whakatane-based company said it expected annual profit to drop 40% to $4.3 million.
The takeover bid allows for Horizon to declare a final dividend to shareholders.
(BusinessDesk)
Paul McBeth
Fri, 05 Jun 2015
Fri, 05 Jun 2015
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Eastern Bay Energy Trust to make formal takeover for Horizon Energy
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