29 September 2009
Marlborough Lines’ partial takeover offer for 51% of Horizon Electricity Distribution Limited (Horizon) opens today. The
Offer of $3.96 per share represents a premium of 34% on the last sale price for Horizon shares prior to the notification
of the Offer.
“The Offer provides a unique opportunity for shareholders to capitalise on their investment in Horizon at a time when
the electricity lines industry faces increasing regulatory, commercial and technical challenges and we believe the price
we are offering per share will be attractive to shareholders,” said Ken Forrest, Managing Director, Marlborough Lines.
Blenheim-based Marlborough Lines has existing joint interests in other regional electricity lines businesses outside its
own region, with 51% ownership of the network joint venture OtagoNet, which delivers electricity to the greater Otago
region, and a 50% share of Nelson Electricity, the company that delivers electricity to Nelson city.
“We have a proven track record of forming successful commercial partnerships in other regions, where we have combined
our operational expertise as a majority shareholder with local knowledge and experience,” said Mr Forrest.
This offer reflects Marlborough Lines’ interest in Horizon as a company with close synergies and mutual strengths that
can be leveraged to support long term business growth, as well as to benefit local electricity consumers and regional
economic development through improved lines infrastructure and enhanced reliability of the network.
“There are specific challenges for provincial lines companies, which serve a comparatively lower number of consumers per
kilometre of line, and whose customers have unique needs. In this context we are excited by the opportunity to make a
contribution to the success of Horizon through added scale, new ideas and investment in the network” said Mr. Forrest.
The Eastern Bay Energy Trust holds 77.29% of the shares in Horizon, so the offer will only be successful – and other
shareholders able to realise the benefits of this offer – if the Trust accepts in respect of a proportion of its shares.
“We are confident that the Trust will give the offer due consideration, given the offer price and the fact that it
provides the Trust with an opportunity to diversify its portfolio at a time when investment markets are improving,” said
Mr Forrest.
“In addition, given that the Trust will retain a significant shareholding in Horizon, it and its beneficiaries can
continue to benefit from the long term growth and performance opportunities Marlborough Lines’ involvement can bring to
Horizon,” he said.
All shareholders have been sent a copy of the offer document. Shareholders are encouraged to read the offer document and
consult their financial or legal adviser, before completing the acceptance form in respect of the shares they wish to
sell.
The Offer is open until 30 October 2009 (unless extended in accordance with the Takeovers Code).
ENDS
About Marlborough Lines:
*Marlborough Lines Limited is a 100% community-owned lines company based in Blenheim, which services an area down to
just north of Kaikoura.
*It is responsible for the management and maintenance of Marlborough’s network of electricity lines, power poles,
transformers and substations, which deliver electricity from the national grid to end-users.
*Marlborough Lines owns 51% of the network joint venture OtagoNet, which delivers electricity to the greater Otago
region, and a 50% share of Nelson Electricity, the company that delivers electricity to Nelson city.
*Including its Marlborough operation and its commercial interests in Otago and Nelson, Marlborough Lines delivers
electricity to 47,000 customers in the South Island.