Vector agrees to buy NGC stake directly

Vector said today it would buy Australian Gas Light's 66 per cent stake in NGC directly.

The Auckland powerlines company had wanted to buy the cornerstone stake through a New Zealand holding company, instead of buying the shares directly. But last month the Takeovers Panel refused to grant them an exemption to do.

Vector said today in a statement it would buy the stake at $2.91 per share.

On October 10 the company had agreed to buy the stake for $3.00 per share, less any dividends declared and paid by NGC after that date. On October 13 NGC declared a special dividend of 9 cents per share to use up available tax credits before the sale.

Vector will now be making a full takeover offer to all NGC shareholders.

The offer is still conditional upon Commerce Commission approval.

Shares in NGC were down 1c at $3.13 in early trading this morning, having ranged between $1.87 and $3.15 over the past 12 months.

- NZPA