Spurned suitor Marlborough Lines says it intends to pursue several allegations about Horizon Energy's behaviour last year as well as the two under investigation by the Takeovers Panel.Marlborough Lines chairman David Dew said the door was now open for mor
Spurned suitor Marlborough Lines says it intends to pursue several allegations about Horizon Energy’s behaviour last year as well as the two under investigation by the Takeovers Panel.
Marlborough Lines chairman David Dew said the door was now open for more complaints through the two potential breaches of rule 64 of the Takeovers Code that the panel was considering.
“We think there’s more and we intend to pursue those. They will have a hearing and that will be our opportunity to present our case.”
Mr Dew said the other allegations were all regarding the “valuations” and premises about Horizon’s statements the $3.96 to $4.68 a share range did not reflect the full value of the company.
“We are pursuing this because we believe in fair and proper treatment according to the law and we don’t think that happened here.”
In September last year, the lines company sought 51% of Horizon at $3.96 a share and its offer valued the company at $99 million – at the bottom of an independent advisors report Horizon Energy directors made public in October.
Simmons Corporate Finance valued Horizon shares at between $3.96 and $4.68.
Marlborough Lines then questioned why directors had not informed shareholders at its annual meeting about seven weeks earlier.
Majority shareholder Eastern Bay Energy Trust (with a 77% stake) blocked the bid, preferring to retain community ownership of the company, which distributes electricity to 24,400 customers in the Eastern Bay of Plenty region.
Mr Dew said he did not know if the trust had much of a role in the saga. “The report was commissioned by Horizon’s directors, we don’t know what went on with the trust.
“All we wanted was fair and proper treatment.”
In January, the trust polled its beneficiaries about a full takeover bid for the remaining 22.7% of Horizon, at an initial offer of $4 a share.
However, Te Mana O Ngati Rangitihi Trust objected and obtained a High Court injunction to stop the poll process.
