KEY POINTS:
Tauranga Energy Consumer Trust has exercised its option to acquire 4.4 per cent of TrustPower shares from Infratil below market value, utilities investor Infratil said today.
The trust will pay $5.90 per share, 24 per cent below TrustPower's current record high share price of $7.80.
The options were part of Infratil's deal to purchase 24 per cent of TrustPower from US-based investor Alliant Energy last month, boosting Infratil's stake to 50 per cent.
The purchase of 14 million shares will raise the energy trust's holding in TrustPower to 33 per cent.
The energy trust has decided not to exercise the option to acquire 10.95 million Infratil shares at market price, Infratil added.
Infratil will place those shares in the market.
"The completion of the option transaction remains subject to the conditions precedent described in the option agreement," Infratil said.
The trust wanted changes to the TrustPower constitution, confirming a Tauranga base for TrustPower, a right to appoint one director to a 25 per cent owner, and a limit on TrustPower's debt gearing.
Shares in Infratil fell 2 cents to $4.70.
- NZPA
