Vector to mount full takeover offer for NGC

Auckland lines company Vector is offering a total of $3.40 a share to acquire the 32.8 per cent of NGC Holdings it does not already own.

NGC today said the $3.40 comprised of  78c cash and $2.62 in Vector shares. The offer would open on July 11 and close and August 10.

Overseas-based NGC shareholders would be offered a cash economic equivalent to the offer made to New Zealand resident shareholders, NGC said in a statement to NZX.

NGC said it would provide a target company statement and appoint an independent advisor who would report to minority shareholders on the merits of the Vector offer.

A committee of independent directors -- chairman Richard Bentley, Rick Bettle and Fran Wilde -- was overseeing all aspects of NGC's response to the takeover notice.

Vector attempted to take over gas distribution and metering firm NGC last year. That offer fell short at 66 per cent when many minority shareholders deemed the $2.91 a share offer too low.

NGC shares last traded on Friday at $3.50, just below a record $3.60 struck on Wednesday. A trading halt on NGC shares was lifted late this afternoon.

Last year, valuers Grant Samuel said the underlying value of NGC shares was in the range of $2.50 to $2.76.

Vector plans to list on the stock exchange after an initial public offering (IPO) later this year.

The shares would be equal to the lower of $2.38 and the final price at which the Vector shares are issued under its prospectus and investment statement.

The IPO represents 25 per cent of the company, and is expected to raise around $600 million.

NGC operates 6000km of gas pipelines, has about 45 per cent of the electricity metering market, and wholesales gas mainly to industrial customers.

- NZPA