Buller Electricity welcomes support for takeover offer

MEDIA RELEASE

3 DECEMBER 2015

Buller Electricity welcomes support for takeover offer

Buller Electricity has welcomed a recommendation from Pulse Energy Independent Directors that Pulse shareholders accept Buller’s Takeover Offer for the NZAX-listed energy retailer.

In a statement sent to all Pulse security holders, the company’s independent directors recommend share and option holders accept the all cash offer.

Buller Electricity CEO Eamon Ginley says Buller’s offer, which is backed by Otago-based Pioneer Generation, provides Pulse security holders the chance to realise their investment for a cash price that is well above the level at which Pulse shares have traded since the company was recapitalized in 2011.

“Supply of and demand for Pulse shares on the NZAX has been consistently low. Buller’s offer gives minority Pulse shareholders and other security holders a rare opportunity to receive a premium for their investment, and gives Buller the opportunity to partner with a company that brings complementary expertise to the table and will help us develop the business,” said Mr Ginley.

Mr Ginley said the Offer price of 11 cents per share represented an 83 percent premium on the price Pulse shares were trading at before Buller’s takeover offer was announced in September, and was at the top end of the price range set by an independent valuation.

He commented that for the Offer to proceed, Buller Electricity required a minimum of 90 percent acceptances from ordinary shareholders. Once this was achieved, Buller would review the other conditions of the Offer and may decide to declare the Offer unconditional, which would allow Buller to compulsorily acquire any remaining Pulse Shares and other securities.

The Offer is open until January 20. However, Mr Ginley said Buller planned to declare the Offer unconditional as soon as it was able to, and shareholders wanting to accept the Offer should do so without delay.

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