Vector closes in as share deadline looms

Vector, poised on the verge of partial privatisation and a stock exchange listing, has snared more than 80 per cent of takeover target NGC.

Its takeover offer closes today, as does its invitation to many Auckland power users to apply for new shares in the energy network company.

Vector told the stock exchange yesterday it now had 82.4 per cent of NGC, just under 8 per cent short of the threshold needed to compulsorily acquire all remaining shares.

Vector hopes to gain complete control of NGC, so it can fully merge the takeover target's wholesale gas, gas transmission and energy metering operation within Vector.

The lure of being paid in Vector shares is a big part of the offer to NGC shareholders, as the stock is expected to be keenly sought.

NGC shares have themselves consistently traded on the open market at prices well above the $3.40 a share Vector is offering.

Shareholders in NGC are being paid the $3.40 partly in cash - 78c a share - and the rest in new Vector shares.

NGC shares have been trading at more than $3.70 for the past month.

New Vector shares are due to start trading on the stock exchange on August 26.

One of the big questions due to be answered this week is how many new Vector shares will be allocated among potential investors.

NGC shareholders are being allocated $380.4 million from the float, and Vector capital bondholders are in line for $153.6 million, leaving $59 million worth of shares for the remaining 286,000 power account holders.

If the response to the share offer from NGC shareholders, beneficiaries of Vector owner the Auckland Energy Consumer Trust and Vector capital bondholders is so high that there are no shares left for anyone else, an allotment will be made within five business days.

Statements saying how many shares each person has been allocated will then be posted out.