Marlborough Lines encouraged by acceptances received to date
Marlborough Lines today advised the Takeovers Panel, the New Zealand Stock Exchange and the target company that it has
already received acceptances for nearly 5% of shares in Horizon Energy held by shareholders other than the Eastern Bay
Energy Trust, under the terms of its partial takeover offer.
“We are encouraged by acceptances received to date, which indicate shareholders consider our offer of $3.96 per share to
represent fair value,” said Ken Forrest, Managing Director, Marlborough Lines.
Marlborough Lines’ offer was based on careful analysis of Horizon’s last two financial reports, which provided
unequivocal statements from Horizon’s directors about the company’s underlying profitability.
At $3.96 per share, the offer represents a 34% premium over the last trading price of Horizon shares before the offer
was notified.
“The offer also 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 when it appears
unlikely Horizon shareholders will receive a competing offer,” said Mr Forrest.
As a partial takeover offer, the offer will only be successful – and other shareholders able to realise the benefits of
this offer – if the Eastern Bay Energy Trust as majority shareholder holding 77.29% of the shares in Horizon accepts in
respect of a proportion of its shares.
It is expected that the directors of Horizon will tomorrow send shareholders in the company a report on the merits of
the offer from an independent party to assist in their consideration of the offer, as required under the Takeovers Code.
“We expect that the Trustees of the Eastern Bay Energy Trust will take appropriate legal and financial advice in
relation to the offer, in light of their legal duties to the beneficiaries of the Trust,” said Mr Forrest.
Marlborough Lines’ partial takeover offer for Horizon was sent to shareholders on 29 September 2009 and the offer
remains open until 30 October 2009 (unless extended).
ENDS