Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


TET Seeks Bids On Powerco Holding

TET Seeks Bids On Powerco Holding

The Taranaki Electricity Trust (TET) is seeking indicative bids on its 11.79% shareholding in power distribution company Powerco, following news of merger discussions between Powerco and NGC.

TET’s board met today and voted by majority to commence the sale process of its shares.

Alongside the 38% Powerco holding of New Plymouth District Council, which is also inviting bids, TET’s stake will put potential buyers in a position to control Powerco. In recent examples of such takeover positions, buyers have paid an average premium of around 25% on the market share price prior to the takeover announcement.

Recent examples also suggest that if TET sold its shares after a merger took place, it could have to accept a discount of around 10% on market value.

Chairman Brian Jeffares says that the Taranaki Electricity Trust deliberated for some time following advice received from their financial advisers.

“We have been well served both by Powerco and our advisers and as prudent trustees we have decided to test the market to ascertain a market value,” he says.

“We are certainly dividend driven and uppermost in our minds is the desire to ensure that the level of funding we have been receiving is matched or bettered. By diversifying our portfolio we will be able to spread our investment risk and take advantage of a premium likely to be offered for the substantial number of shares being made available.
”We have enjoyed a fantastic journey with Powerco and we look forward to their progress with much interest.”

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Onetai Station: Overseas Investment Office Puts Ceol & Muir On Notice

The Overseas Investment Office (OIO) has issued a formal warning to Ceol & Muir and its owners, Argentinian brothers Rafael and Federico Grozovsky, for failing to provide complete and accurate information when they applied to buy Onetai Station in 2013. More>>

ALSO:

Tomorrow, The UN: Feds President Takes Reins At World Farming Body

Federated Farmers president Dr William Rolleston has been appointed acting president of the World Farmers’ Organisation (WFO) at a meeting in Geneva overnight. More>>

ALSO:

I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>

ALSO:

Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>

Earlier:

Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>

ALSO:

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news