Marlborough Lines Ltd continues to stalk hostile target Horizon Energy Distribution Ltd with a move today to buy another 5 percent of the Whakatane-based electricity distribution company.Marlborough Lines purchased 10.1 percent of Horizon Energy earlier t
Marlborough Lines Ltd continues to stalk hostile target Horizon Energy Distribution Ltd with a move today to buy another 5 percent of the Whakatane-based electricity distribution company.
Marlborough Lines purchased 10.1 percent of Horizon Energy earlier this month via a stand in the market at $4.06 a share. Today it instructed First NZ Capital Securities Ltd to acquire up to 1.25 million more shares, or another 5 percent of the company.
The purchases will be made via a special order facility, which opened at 10am today.
Such facilities are used when shares are purchased with conditions, and they are similar to stands in the market. The facility remains open until 5pm on July 16.
If within six months from June 12, Marlborough Lines purchases Horizon Energy shares for more than $4.06, shareholders accepting under the facility get the higher amount.
Horizon Energy is 77.3 percent owned by Eastern Bay Energy Trust, which would like to move to 100 percent ownership.
Marlborough Lines failed in a partial bid for the Whakatane-based electricity network operator last year.
Marlborough Lines owns a half share in Nelson Electricity and 51 percent of OtagoNet. It is a specialist network company, which had to sell generation assets when the Government stopped network businesses from owning electricity generation assets. Its stand in the market cost about $10 million.
Eastern Bay Energy Trust has expressed disappointment that Marlborough Lines is continuing to pursue Horizon Energy.
