21 October 2004
News Release
Prime Infrastructure Optimistic Of Reaching 90% Target
Prime Infrastructure is optimistic of reaching the 90% target for compulsory acquisition of Powerco following the
release today of the Powerco’s recommendation that shareholders accept Prime’s offer.
Prime Infrastructure Managing Director, Chris Chapman said that based on the report of independent advisers Grant Samuel
and Associates, the Directors of Powerco have recommended that Powerco shareholders accept Prime’s $2.15 Offer for their
shares.
Grant Samuel has confirmed that, in its opinion, the full underlying value of Powerco shares (including a premium for
control) is in the range of NZ$1.81 to NZ$2.12 per share. Grant Samuel has valued all acceptance options under the
Offer. All options fall within a value range of $1.91 to $2.15.
“Our Offer to Powerco shareholders is greater than or equivalent to Grant Samuel’s assessment of the underlying value of
Powerco,” he said.
The deal also cleared another major hurdle today with the Overseas Investment Commission granting its approval for the
deal.
“As we said at the outset, our investment in Powerco is a beachhead for Prime Infrastructure. We are making a
significant and long-term commitment to investment in Powerco and New Zealand,” he said.
With just under two weeks until the offer closes, Chris Chapman said Powerco Shareholders and capital bondholders should
take the opportunity to accept the offer.
“We would encourage all Powerco shareholders who have not already done so to accept the advice of the Powerco Directors’
and complete and return the acceptance documentation as a matter of some urgency, given the looming closing date,” he
said.
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