Payment For Infratil Shares Lodged In Trust
PAYMENT FOR INFRATIL SHARES LODGED IN TRUST ACCOUNT
Natural Gas Corporation Holdings Limited confirmed today that the Company has transferred the provisional payment of approximately $34.5 million for the buy-back of Infratil's shares into a trust account.
Chief Executive Officer Richard Bentley said NGC had taken this action because Infratil had declined to transfer the shares involved in the buy-back, or make any other arrangement acceptable to the Company.
"Our legal advice is that Infratil is obliged to transfer the shares back to NGC in consideration for the provisional payment," Mr Bentley said.
He emphasised that NGC had made the payment in good faith and had made the payment into the trust account, to be held until the situation was clarified.
In accordance with procedures under the buy-back provisions of the Companies Act, NGC has nominated a price of $1.30 per share to repurchase the 26,581,934 shares held by Infratil. As Infratil has objected to this price, the matter will now go to arbitration.
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