KEY POINTS:
New Zealand's richest family could still face a fight for control of King Country Energy despite lifting their offer price for the small electricity retailer.
Todd Energy - one of the Todd family's investment vehicles - yesterday raised its bid from $4.40 to $5 a share, valuing King
Country at $93.75 million.
The revised bid was described as "more realistic" by Brian Gurney, chairman of the second-biggest shareholders, the King Country Electric Power Trust.
But Gurney said the trust was still considering making its own bid - to increase its stake from 10 per cent to 27.5 per cent. Todd Energy is seeking majority control of King Country Energy by lifting its stakes from 35.8 per cent to 50.1 per cent.
The shares - which last traded on the unlisted market at $4.53 - were put on a trading halt on Tuesday after the King Country Energy board confirmed it had received the new offer.
An independent sub-committee of non-Todd Energy directors has been established to review the new offer and make a recommendation to shareholders.
The committee rejected Todd's November bid of $4.40 - which fell well short of a valuation by corporate advisory group Grant Samuel.
The Grant Samuel report gave the company a value of between $4.80 and $5.26 a share. Gurney said the trust would assess the new offer but was still working on a portfolio review that needed to be completed before deciding on a bid.
Given that Todd was seeking just another 14 per cent and the trust was looking for 17.5 per cent, there may be enough shares available for both bids to proceed.
However, if successful, the trust's bid would give it an effective veto over all big decisions facing the company, including Todd Energy's proposal to merge the business with neighbouring Bay of Plenty Electricity.
Todd Energy chief executive Richard Tweedie was unavailable for comment yesterday.
King Country Energy is the main electricity supplier for the Waitomo, King Country and Ruapehu Districts.
Waitomo Energy Services Trust is the third biggest shareholder and remaining shares (about 47 per cent) are held by more than of 9200 smaller shareholders, many of whom reside in King Country area. It is understood many locals are passionate about the local ownership of the company.
Todd Energy has an estimated value of more than $2 billion and owns a 6.3 per cent stake in the Maui field, a 26 per cent stake in Pohokura gas field as well as stakes in several smaller fields.
As well as the stake in King Country Energy, it owns all of Bay of Plenty Electricity and has a 10 per cent stake in Australia's Cue Energy.