Shareholders Should Reject ‘Spoiling’ Bid

Energy Trust Says Shareholders Should Reject ‘Spoiling’ Bid

The Eastern Bay Energy Trust is urging Horizon Energy Distribution Limited minority shareholders to reject the share offer from Marlborough Lines made today.

Said trust deputy chairman Kevin Hennessy: “Firstly, it is not the full $4.15 a share that it appears to be – the net figure is actually $4.06 because the offer price includes the dividend that Horizon’s minority shareholders would receive anyway.

“Secondly, it is a spoiling bid that is purely aimed at the trust not being able to achieve 100 per cent local ownership of what is a strategic local infrastructure asset. We think that local shareholders at least understand the importance to the Eastern Bay area of full local control and the retention of local jobs.”

Mr Hennessy said that it was significant that notice of the Marlborough offer was being made at a time when the trust’s own bid had been suspended while a High Court ruling on matters related to that process was being sought.

“The Marlborough move is opportunistic action by outside interests to interfere in local business to the potential detriment of the local community,” he said.

Mr Hennessy said that, at this stage, the trust still intended to make an offer for the remaining shares that it does not own, pending a successful outcome to the High Court process.

The Eastern Bay Energy Trust currently holds 77.3% of the shares in Horizon Energy.

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