Energy trust sells further parcel of its NGC shares

The Hutt Mana Energy Trust has confirmed it has sold a further parcel of shares in energy company NGC Holdings.

The 12 million shares, or about 1.5 per cent of the company, were sold to institutional and retail buyers after the close of trade on Monday at $1.52 per share - a 5.6 per cent discount to the day's closing price of $1.61.

Shares in NGC slipped 3c to $1.58 yesterday.

Hutt Mana said the stake hadn't gone cheaply, however.

"We consider that $1.52 is an excellent price for the shares, bearing in mind the larger size of the parcel of shares sold," trust chairman David Ogden said.

"A little over a year ago we had the NGC shares showing on our annual accounts at $1.02 a share, and in March we sold 15.5 million shares for $1.40 a share - so we are pleased with the outcome of this sale."

The sale leaves the community-owned trust, which is made up of power customers in the Hutt and Mana districts, with about 6.6 per cent of NGC's shares, compared with 8.2 per cent previously.

Trust secretary Stephen Sherring yesterday declined to comment on the possibility of further sales of Hutt Mana's stake.

Brokers expect the gradual sale process to continue.

"They've announced that they are getting out and I think they're just placing it when and if there's demand coming through," ASB Securities broker Stephen Wright said.

Hutt Mana has been a shareholder in NGC since the company bought power generator and retailer TransAlta New Zealand in 2000.

The trust decided last year to sell its NGC shares, after consultation with its beneficiaries. It reduced its stake by 2 per cent in March.


- NZPA