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


CCHL ups LPC offer to $2.20, goes unconditional

CCHL ups LPC offer to $2.20, goes unconditional

News release
29 March 2006

Christchurch City Holdings Ltd and Hutchison Port Holdings Ltd have put their proposal for Lyttelton Port Company Ltd on hold.

This is while CCHL proceeds with its takeover of LPC, and considers options on dealing with the issue of Port Otago Ltd’s potential blocking stake of 10.1% in LPC.

With the support of LPC’s independent directors, CCHL this afternoon announced a new, unconditional offer to LPC shareholders of $2.20 per share.

LPC directors are recommending acceptance of the $2.20 offer, which is 26% above LPC’s share price the day before the original offer of $2.10 was made, and 2 cents above the yesterday’s closing price (Tuesday).

The independent directors are warning LPC shareholders of future threats to LPC’s share price.

They say the delay in the proposed transaction with HPH, together with the possibility of another port making a similar agreement, would increase the competitive threat to LPC.

“Both of these factors may result in the market price of LPC’s shares falling – potentially to a level significantly below the increased offer price of $2.20,” say these LPC directors.

Waiving of the 90% condition means that CCHL will pay LPC shareholders within seven days of receipt of their acceptance forms. LPC shareholders who have already accepted the $2.10 offer will get the $2.20.

Partnership with HPH
“In terms of the agreements between CCHL and HPH, the privatisation of LPC cannot now proceed as originally planned ” said the Chief Executive of CCHL Bob Lineham.

“HPH have therefore agreed to withdraw and that CCHL can go it alone as it sees fit, and we will be seeking to resume the relationship with HPH once CCHL has completed the current offer.

“As many commentators and analysts are warning, the New Zealand port industry faces inevitable rationalisation, and we believe that HPH is the best partner to ensure that the Port of Lyttelton can succeed in this very competitive environment.

“We remain convinced that the Port needs a strong international partner in order strengthen its future.

“Once the takeover has proceeded to the next stage, we expect to progress further discussions with HPH, who we are convinced are still the best independent partner to secure the long-term benefits of a strong Lyttelton Port for the economy of the region.

Port Otago
“We have had some unsatisfactory discussions with Port Otago and have so far been unable to determine what their intentions are.

“While we are open to sensible proposals, we are not about to enter into any arrangements with Port Otago which risk the future of Lyttelton.

“We have therefore decided to give other LPC shareholders the certainty of $2.20 until 12 April when the offer will close,” said Mr Lineham.


© Scoop Media

Business Headlines | Sci-Tech Headlines


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>>


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>>


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>>


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>>


Half A Billion Accounts, Including Xtra: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>


Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news