Vector delays decision

By CHRIS DANIELS

Vector's capital bond-holders, who have already waited nine months to hear the future of partial privatisation and stock exchange listing plans, should have a decision by the end of next month.

Vector, which is New Zealand's largest power lines company, has yet to say if it still plans to float 24.9 per cent of the company this year.

Chairman Michael Stiassny, who said last month that a decision could be reached by the end of July, said yesterday that it was now expected by the end of next month.

Vector is owned by its customers through the elected Auckland Energy Consumer Trust. The next election is due in October.

Those who bought bonds in the $307 million issue last September were told that Vector's board was "working towards" partial privatisation and listing.

They were also given the right to invest in any future float, with every dollar of capital notes giving the bond-holder the right to get 50c worth of Vector shares at a 2.5 per cent discount to the offer price.

If there is no float before September 30, the bonds' rate increases from 8.25 per cent to 9.75 per cent.

The Business Herald understands the float plan is dead, despite the board's giving itself another two months to debate the topic.

Any decision would have to be endorsed by the trust, which had three of its five members elected in 2000 on anti-privatisation platforms.

Bond-holders will hold preference rights in any float, whether it happens before the September 30 deadline or not.