NGC declares special dividend

10.00am

Gas pipelines company NGC Holdings today declared a special dividend of 9 cents a share to use available tax credits before Australian gas Light Co sells its 66 per cent stake to Vector.

AGL has agreed to sell its stake to Vector at $3/share, triggering a full takeover offer by Vector of NGC.

"When concluded, this agreement will represent a shareholder continuity break resulting in the forfeiture of any imputation credits existing at that time," NGC said in a statement.

A special dividend would be paid as an advance on the interim dividend normally declared in February, so that shareholders could receive the benefit of available tax credits before the sale of AGL's majority shareholding in the company.

A change of ownership results in the tax credits being lost.

The dividend would be paid on November 3 to all shareholders on the register as of October 28.

Shares in NGC closed yesterday at $3.00.

- NZPA