Vector users in line for $1375 parcel

Auckland power users should be able to buy at least $1375 worth of Vector shares in the $593 million float.

The Herald understands that demand for the offer mirrors similar public floats, with between 15 and 20 per cent of those entitled to the offer having expressed an interest.

Three pools of potential shareholders are now vying to get their hands on new shares.

NGC shareholders are being allocated $380.4 million from the float, with Vector capital bondholders in line for $153.6 million, leaving $59 million worth of shares for the remaining 286,000 power consumers in Auckland, Manukau and Papakura. Based on the conservative 15 per cent estimate, that equals a parcel of $1375.
But final totals could increase, since all shares not taken up by capital bondholders will be put into the power users' pool.

Meanwhile, Vector is offering a cash and shares deal to NGC shareholders, as it seeks to complete a full takeover of the company. It bought 66 per cent of it last year.

NGC shareholders are being offered $3.40 a share, with 78c in cash, the rest in new Vector shares.

NGC shares closed yesterday at $3.68c, down 4c from the day before.

Analysts are predicting a listing premium of more than 12 per cent.

Vector already has some idea of what sort of interest there is from beneficiaries in buying its new shares, since it asked for "pre-registrations" last month.

The forms were filled out on a "no-obligation" basis and it remains to be seen whether these expressions of interest will translate into actual cheques being written.

Auckland Energy Consumer Trust chairman Warren Kyd said yesterday that the annual dividend payout to beneficiaries was predicted to grow by 60 per cent in 2006, given the larger size of Vector.