Ngai Tahu raises bid for Shotover

South Island tribe Ngai Tahu has sweetened its takeover bid for Shotover Jet to 90c a share from 71.25c.

Ngai Tahu already owns 88.3 per cent of the company.

Shotover directors said they would take advice on the new bid.

The adventure tourism company's independent directors last month gave shareholders mixed advice on whether to accept the previous offer.

An independent report by Grant Samuel on the earlier offer valued Shotover at 82c to 94c a share, and deemed the Ngai Tahu offer "unfair".

But in a letter to shareholders, the independent directors noted that there was a risk that if the offer did not reach the compulsory acquisition threshold of 90 per cent, the company's then share price of around 70c could slip anyway. The stock closed at 90c yesterday.

The directors, some of whom had agreed to sell their shares, had advised shareholders not to accept the earlier offer if they wanted to stick with the company's improving fortunes.

"The independent directors consider that the improvement in the financial and operational performance of the company is sustainable," they said.

Tauranga investor Lloyd Christie led a minority shareholders' campaign opposing the 70c offer price.

He had been contacted by 46 shareholders owning 2.2 million shares. Just over 350 shareholders out of about 1200 accepted the previous offer.

- NZPA