Eastern Bay Energy Trust has suspended its takeover offer to NZX-listed Horizon Energy (HED) while it waits for a High Court determination.The trust made a $4-a-share offer for the Whakatane company in January. It already owns 77.39% stake.
Eastern Bay Energy Trust has suspended its takeover offer to NZX-listed Horizon Energy (HED) while it waits for a High Court determination.
The trust made a $4-a-share offer for the Whakatane company in January. It already owns 77.39% stake.
The trust needed more than a 50% positive response from regional beneficiaries and shareholders before making the offer, but last Friday, Matata-based Te Mana o Ngati Rangitihi Trust sought an interim injunction to stop the counting of votes in a poll of Horizon consumers (the trust’s beneficiaries).
The trust said today the injunction had now been withdrawn.
Although the court did not stop the counting, Eastern Bay Energy Trust agreed not to announce the result of the poll until a hearing on the injunction – scheduled for the Auckland High Court today.
Trust chairman David Bulley said in a statement it had made an application to the High Court to clarify matters under its trust deed.
“The Eastern Bay Energy Trust has subsequently considered certain matters raised in the injunction application and the trustees have taken specialist legal advice in relation to the terms of the trust deed, which has led to a decision to seek a High Court ruling.
“The injunction has now been withdrawn pending the Eastern Bay Energy Trust making application to the High Court for clarification of the issues, which relate to the powers of the trustees under the trust deed to acquire further shares in Horizon.
“At the same time the Eastern Bay Energy Trust has agreed to suspend the takeover offer process until a determination has been handed down by the Court. Therefore, the current proposed takeover offer will not be proceeding.”
Mr Bulley said the Ngati Rangitihi Trust had not agreed to announce the result of the poll, which had also not been disclosed to the trustees.
Horizon Energy shares were down this morning from $3.90 to $3.74.
