12.30pm
Control of power company TrustPower Ltd has been delivered to the Infratil-Alliant grouping after it was announced today the Australia Gas Light Company (AGL) had quit its 20 per cent holding as part of a TrustPower share buy-back.
TrustPower's two-for-seven buy-back offer at $3.70/share closed on Thursday and the company announced
the results today.
Infratil's holding has increased to 35.3 per cent from 27.9 per cent, while Alliant International's stake has increased to 23.8 per cent from 18.9 per cent.
The Tauranga Energy Consumer Trust's stake has increased to 28.6 per cent from 22.7 per cent. Minorities now control 12.3 per cent against 10.1 per cent before the buy-back.
The structure of the buy-back has allowed the major shareholders who did not participate in the buy-back to increase their stakes above 20 per cent without making a full takeover offer.
TrustPower received acceptances under the buy-back offer for 41.2 million (out of a maximum of approximately 56.7 million sought under the buy-back), and so TrustPower said it had been able to waive conditions on the buy-back.
Shareholders will be sent a notice of a special meeting to consider the resolutions required for the buy-back shortly. The notice will be sent after the preparation of an independent report on the buy-back. Those shareholders who have accepted the buy-back offer, other than AGL, will be given the opportunity to withdraw their acceptance up until seven days after the holding of the special meeting.
AGL is understood to have paid around $3.80-$3.90/share accumulating its stake against the buy-back price of $3.70. The buy-back offer was considered tax efficient for TrustPower.
TrustPower shares closed on Thursday at $4.15.
The Takeovers Panel earlier restrained the buy-back, requiring the company to call a shareholders' meeting to approve the buy-back because it did not comply with the takeovers code's class exemption provisions.
TrustPower announced the buy-back on March 20. The shares had been trading higher than $3.70 before the offer and closed on March 20 at $3.95 -- 25 cents up on the buy-back price. Some analysts did not believe it would receive much support.
- NZPA
