22 Jun 2000
Infratil today announced that it has received an offer from Taranaki Electricity Limited (a subsidiary of Powerco Limited) for its remaining 5% stake in CentralPower.
The price is $3.45 per share for its 3,282,868 shares giving an aggregate sale price of $11.3 million. The shares have an average cost price of $1.83 per share.
Infratil will receive the 16 cents per share dividend payable by CentralPower on 7 July 2000. Settlement will occur on or before 30 June 2000.
This will complete Infratil's exit from CentralPower. This exit was required of Infratil under the Electricity Industry Reform Act 1998 because of its continuing investment in electricity generation and retailing businesses.
Infratil has also advised the Boards of both CentralPower and Powerco of its support for the amalgamation of the two companies.
Mr Kevin O'Connor, Chairman of Infratil, said:
"Infratil is pleased that both companies have agreed to the amalgamation, and that the key council and community trust shareholders are supporting it. Infratil has, for a long time, been a supporter of the amalgamation. We believe it will benefit both shareholders and consumers through the greater operational and financial efficiencies that will come out of the amalgamation."
He also said:
"Infratil looks forward to the conclusion of the amalgamation and subsequent listing of the new amalgamated company on the New Zealand Stock Exchange."
On amalgamation, Infratil will hold approximately 4.9% of the shares in the new company.
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