Horizon Energy Distribution's biggest shareholder Eastern Bay Energy Trust will make a formal takeover bid at 6.3 percent premium, having sewn up a deal with the Bay of Plenty lines company's second-biggest shareholder that takes its ownership above the threshold required to mop up minority investors.
The trust will offer to buy the remaining shares at $4.41 apiece, a premium to the last trading price of $4.15, as part of broader agreement it reached to buy Marlborough Lines' 14 percent stake in Horizon. That deal takes the trust's holding above the 90 percent ownership level needed to enforce mandatory sales under the Takeovers Code.
Eastern Bay Energy Trust intends to make the offer on June 29 for a July 30 close, and it will enforce the mop-up provisions as soon as it acquires Marlborough Lines' shares.
The shares jumped 32 percent after the trust announced the pre-bid agreement with Marlborough Lines and foreshadowed the takeover bid.
In November, Horizon reported a 58 percent slump in first-half profit after a Commerce Commission ruling cut the amount the lines company can earn from its regulated business as part of an out-of-court settlement for over-charging in 2012. The Whakatane-based company said it expected annual profit to drop 40 percent to $4.3 million.
The takeover bid allows for Horizon to declare a final dividend to shareholders.
