King Country Energy rejects two-tier Trustpower offer
Trustpower won't up its offer for King Country Energy.
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The independent directors of King Country Energy are urging the company's 6000 independent shareholders to reject Trustpower's [NZX: TPW] two-tier takeover offer, saying the whole offer should be pitched at $5 a share irrespective of uptake.
Trustpower is pitching its offer at $4.78 per share for acceptances between 50.1% and 70.2% of KCE's shares, and at $5 per share if more than 70.2% accept, excluding any acceptances received from the King Country Electric Power Trust, which holds 19.98% of KCE's shares.
Nova Energy, a subsidiary of Todd Energy, has already said it will accept the offer for its 54.07% holding.
However, independent chairman Toby Stevenson recommended against acceptance "unless the offer price is increased to $5 regardless of the level of acceptances", following an independent adviser's report that put the value of the shares at between $4.62 and $5.90 apiece.
A statement, to be issued early next week, shows the independent directors asked Trustpower to amend its offer, The request was declined.
"The independent committee notes that a 70.02% shareholding in KCE does not provide Trustpower with any more legal control over KCE than a 54.07% shareholding, so $5 per share does not represent a premium for control," Mr Stevenson says.
KCE shares, which trade on the Unlisted platform, last changed hands at $4.31.
The company has around 17,000 retail customers and several small hydro power stations.
NZX-listed Trustpower shares fell 2.7% to $7.49.
(BusinessDesk)
An earlier version of this story incorrectly said the King Country Electric Power Trust had already indicated it will not be participating in the offer. The trust made no remarks to this effect leading up the date this story was published. NBR regrets the error.
Pattrick Smellie
Wed, 25 Nov 2015
Wed, 25 Nov 2015
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King Country Energy rejects two-tier Trustpower offer
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