Vector's chance at NGC threatened

By LIAM DANN

Time is running out for Vector to resolve its internal wranglings.

The power lines company now has just 15 days to lodge its takeover bid for gas pipelines group NGC, those close to the sale process say.

Australia's AGL - which is selling its controlling 66 per cent stake in NGC - yesterday confirmed that the formal process was under way and attracting "significant interest from a number of companies".

Vector trustees have become embroiled in a complicated legal battle over plans to float off 25 per cent of the company and raise up to $700 million, to mount a takeover bid for NGC.

An AGL spokesperson yesterday confirmed that an information memorandum about NGC had been made available to potential buyers.

She refused to comment further on details of the sale process.

However, it is understood that an October 6 deadline has been set for indicative bids.

Reports in the Australian media say 20 companies have expressed interest in buying NGC.

The Australian Financial Review reports that interested parties include Australia's Prime Infrastructure, Alinta, Diversified Utility & Energy Trusts and Hong Kong-based Cheung Kong Infrastructure.

A Vector spokesperson said the company had no comment to make about the NGC sale process.

The NGC takeover plan, and the partial float required to make it happen, have sparked a bitter dispute between Vector trustees.

Chairman Warren Kyd, who supports the move, successfully blocked anti-privatisation trustee John Collinge from voting on the issue last week.

Backed by the High Court, Kyd ruled Collinge could not vote because his family's ownership of $200,000 of Vector bonds was a "material interest" in the transaction.

This has split the trust equally, but may have cleared the way for privatisation, as Kyd could use his chairman's casting vote in favour of the plan.

Justice Helen Winkelmann's decision delivered on a confidential basis last Friday - was due to be made public yesterday afternoon.

Another issue relating to the confidentiality was raised by one of the parties, delaying the process.

By the time the Herald went to press last night the judgment had not been issued publicly by the court.

The speculation about NGC has been good news for shareholders.

Shares have risen 42 per cent from $2.17 in February. They closed last night up 3c for the day at $3.10.