First NZ Capital is standing in the market to buy 10.1 percent of Whakatane-based Horizon Energy Distribution Ltd on behalf of Marlborough Lines.Horizon Energy is 77 percent owned by the Eastern Bay Energy Trust so the stand is for nearly half of the shar
First NZ Capital is standing in the market to buy 10.1 percent of Whakatane-based Horizon Energy Distribution Ltd on behalf of Marlborough Lines.
Horizon Energy is 77 percent owned by the Eastern Bay Energy Trust so the stand is for nearly half of the shares remaining, which brokers said are mostly held by retail investors.
Marlborough Lines made a failed partial bid for the electricity distribution company last year.
The stand in the market commenced at 10.45am and is at $4.15 per share.
The company's share price rose 79c, or 23.44 percent, to $4.16 this morning.
Brokers said a line of 220,000 shares went through the market this morning and this was likely to be ACC selling its holding.
From Wednesday the price becomes $4.06 per Horizon Energy share because a nine cent a share dividend is not longer payable.
Marlborough Lines confirmed in a statement that it is behind the stand in the market, which will cost it in the order of $10 million, if successful.
Chairman David Dew said the acquisition of a 10.1 percent stake would provide a further opportunity for expansion of Marlborough Lines' interests in its core area of business.
Horizon Energy supplies about 24,000 customers.
Following its previous offer Marlborough Lines complained to the Takeovers Panel that the directors of Horizon Energy had undertaken misleading or deceptive conduct in relation to the provision of information to the market and this complaint was upheld. The panel was satisfied with other aspects of the bid and did not take any further action.
Horizon Energy made an audited net profit after tax of $5.9m for the year ended March 31.
