Marlborough Lines has acquired 10.1 per cent of Horizon Energy Distribution Ltd, to the annoyance of 77.3 per cent owner Eastern Bay Energy Trust.
The stake was acquired via a stand in the market by First NZ Capital at $4.06 a share. That stand is now closed. Marlborough Lines failed
in a partial bid for the Whakatane-based electricity network operator last year.
"We take the opportunity to remind Horizon Energy shareholders that, should Marlborough Lines acquire further Horizon Energy shares in the next six months from June 11, 2010 for more than the offer price of $4.06, you will receive a further cash payment, topping up your proceeds to the higher price paid," Marlborough Lines said in a statement.
Marlborough Lines owns a half share in Nelson Electricity and 51 per cent of OtagoNet. It is a specialist network company, which had to sell generation assets when the Government stopped network businesses from owning electricity generation assets. Its stand in the market cost about $10 million.
Eastern Bay Energy Trust said it was disappointed that Marlborough Lines achieved its goal of attaining the stake in Horizon.
"As we have noted, this is a spoiling move that potentially blocks the ability of the trust to attain 100 per cent local ownership of Horizon Energy, and this is a disappointing development from a local point of view," said deputy chairman Kevin Hennessy.
"This intervention by Marlborough serves no practical purpose for anyone and gives them no automatic rights other than those of a minority shareholder."
He said the trustees were frustrated at having to put their own offer for the remaining shares in Horizon on hold pending having to seek a High Court ruling clarifying whether it could make the offer. This had effectively provided the opening for Marlborough Lines to make its stand in the market.
"Our goal in all of this is to ensure that, as far as possible, profits from Horizon are put back into the local community," Mr Hennessy said.
- NZPA
