Marlborough Lines' bid for 51 per cent of Horizon Energy has been rejected by Horizon's majority shareholder.
The Eastern Bay Energy Trust, which owns 77.3 per cent of Horizon, announced its decision to reject the offer today.
Marlborough is offering $3.96 a share, which is at the bottom of a
valuation range of $3.96 to $4.68 determined by independent adviser Simmons Corporate Finance.
With the trust's rejection, Marlborough, a Blenheim-based lines company, will not be able to buy any shares under the offer as it will not be able to get acceptances for at least 51 per cent of the shares.
Horizon has almost 25 million shares, so the offer valued it at nearly $99m.
For its offer to succeed, Marlborough would have needed acceptances for nearly 12.75m shares, of which at least nearly 7.1m would have been from the trust.
The trust met today and after making its decision to reject the offer chairman David Bulley said the trust's preference was to retain control of what was a strategic local asset.
The trust had arrived at its decision with the benefit of having earlier undertaken an in-depth review of its investment in Horizon and alternative options, Bulley said.
Marlborough's offer was at a premium of 34 per cent above the $2.95 last trading price of Horizon shares before the offer was announced.
- NZPA
