NGC directors have given their qualified blessing to Vector's takeover of the company, saying shareholders should accept the $2.91 deal - but think about it first.
Vector, the Auckland-based energy network company, is trying to buy out minority shareholders in NGC, the country's largest gas transmission and energy metering business.
It launched its $1.28 billion takeover after buying the 66 per cent NGC stake owned by Australian Gas Light (AGL).
The NGC share price has remained stubbornly above the $2.91 per share offered by Vector, but it slumped yesterday - falling 14c to end the week at $2.96 - after the independent appraisal report written by valuers Grant Samuel judged the price above fair value.
Grant Samuel says the underlying value of NGC shares is in the range of $2.50 to $2.76.
"The fact that the offer is considered fair and price representative of the market value of AGL's controlling stake in NGC is not on its own a sufficiently compelling reason to accept the offer."
It says the independent directors considered it highly unlikely that a better offer would be made.
"However, Vector could make a subsequent offer on different terms if it does not reach the compulsory acquisition threshold of 90 per cent of NGC shares," the report said.
