Sale widens UnitedNetworks' investor base

Kansas-based UtiliCorp United has cut its stake in UnitedNetworks, the gas, electricity and fibre-optic networks concern, to 70.2 per cent from 78.8 per cent, netting $104 million.

UtiliCorp said it had placed the 13 million shares with a range of local and overseas investors at $8 a share, an 8 per cent discount to the prevailing price.

It said demand for the shares, which were held through its local subsidiary UtiliCorp New Zealand, was strong and not all applications were successful.

"[We are] delighted to have created the ability for investors to take a more meaningful stake in what is New Zealand's premier network owner," UtiliCorp told the Stock Exchange.

Deutsche Bank managed the share placement.

ABN Amro Craigs broker Nigel Scott said the market had been looking for a bigger placement to provide greater liquidity for the top-10 stock but the move was still positive. "It's a very good move for the market. It doesn't replace Fletcher Energy but it does provide another large stock in which the market didn't have liquidity before."

UnitedNetworks' shares have been on a big run in the past year, rising from a historical low of $5.60 early last April.

The lines company has few institutional shareholders but almost 21,000 small shareholders.

- NZPA