Buller Electricity instigates mop-up provisions
Buller Electricity compulsorily acquires rest of Pulse shares.
Buller Electricity has sent a compulsory acquisition notice for the remaining shares in Pulse Energy, after becoming the dominant shareholder in the energy retailer following a takeover bid.
The South Island lines company holds 90% or more of the voting rights in Pulse and all shareholders must now sell their shares to Buller.
Shareholders have until February 2 to return a signed transfer form, and will be paid out, at 11c per share, within seven days.
Buller announced its intention to take over Pulse in October, and made its full bid in November, offering 11c per share, 5c per option and $1.10 for each mandatory convertible notes. Pulse's NZAX-listed shares last traded at 10.5c, and have gained 50% in the past year.
On December 31, three of Pulse Energy's directors accepted the share offer, giving the lines company more than 90% of the shares and the ability to enforce compulsory acquisition of the remaining stock.
Pulse had ceded a controlling stake to Buller in 2011 to repay debt and provide capital for expansion after the minnow retailer ran out of cash and leaned on the shareholder to get it through.
Buller Electricity is the local lines network company on the West Coast. It reported an annual profit of $328,000 in the year to March 31, on operating revenue of $110 million, according to its 2015 annual report.
The independent adviser's report by Campbell Macpherson valued the shares at between 9.2c and 11.3c, the options at a maximum of 2.8c, and the notes at $1.11 to $1.15. The report said all three prices offered fell within its valuation ranges, but investors would need to make up their own minds on whether to accept the offer.
(BusinessDesk)
Sophie Boot
Tue, 12 Jan 2016
Tue, 12 Jan 2016
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Buller Electricity instigates mop-up provisions
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