Partial takeover offer for Horizon Energy
14 September 2009
Marlborough Lines to make partial takeover offer for Horizon Energy
Marlborough Lines today announced that it intends to make a partial takeover offer for 51% of lines company Horizon Electricity Distribution Limited (Horizon). The Offer of $3.96 per share represents a premium of 34% on the last sale price for Horizon shares.
The Offer reflects Marlborough Lines’ interest in Horizon as a company with close synergies and mutual strengths that can be leveraged to support long term business growth, as well as to benefit local electricity consumers and regional economic development through improved lines infrastructure.
“As a provincial lines business with existing joint interests in other regional electricity lines businesses outside our region, we are uniquely placed to work with Horizon to meet the increasing commercial, technical and regulatory challenges facing regional lines businesses, as well as to provide scale, new ideas and industry leading operating practices,” said David Dew, Chairman of Marlborough Lines.
Because Horizon is a publicly listed company and Marlborough Lines is seeking to acquire a significant shareholding, the Takeovers Code requires Marlborough Lines to make a takeover offer. Marlborough Lines has chosen to make a partial takeover offer – rather than a full takeover offer – as it assumes existing major shareholder Eastern Bay Energy Trust would want to retain a significant stake in Horizon.
Mr. Dew said Marlborough Lines’ offer would provide both short and long-term benefits to the Eastern Bay of Plenty region.
“In the short-term the Offer would enable the community – as beneficiaries of Eastern Bay Energy Trust’s shareholding – to realise immediate value from the sale of a proportion of the Trust’s existing 77% shareholding in Horizon.”
“Longer-term, community benefits will come from the operational efficiencies that added scale brings and Marlborough Lines’ commitment to investment in the lines network that Horizon operates. This will not only enhance the reliability of the local network, but also make a positive contribution to Horizon’s future growth prospects, enabling the Trust to extract more value from their remaining investment in Horizon for the benefit of the community,” he said.
Marlborough Lines’ partial takeover Offer for Horizon will be sent to shareholders on 29 September 2009 and (unless extended) remains open until 30 October 2009.
Under the Takeovers Code which applies to the Offer, the directors of Horizon will obtain a report on the merits of the Offer from an independent party. This, as well as other information required under the Takeovers Code, will be sent to shareholders to assist in their consideration of the Offer.
ENDS
About
Marlborough Lines:
• Marlborough Lines Limited
is a 100% community-owned lines company based in Blenheim,
which services an area down to just north of
Kaikoura.
• It is responsible for the management and
maintenance of Marlborough’s network of electricity lines,
power poles, transformers and substations, which deliver
electricity from the national grid to end-users.
•
Marlborough Lines owns 51% of the network joint venture
OtagoNet, which delivers electricity to the greater Otago
region, and a 50% share of Nelson Electricity, the company
that delivers electricity to Nelson city.
• Including
its Marlborough operation and its commercial interests in
Otago and Nelson, Marlborough Lines delivers electricity to
47,000 customers in the South
Island.