2 Dec 1999
Infrastructure & Utilities NZ Ltd (Infratil, NZSE:IFT), Alliant International New Zealand Ltd (Alliant Energy, NYSE:LNT), and The Australian Gas Light Company (AGL, ASX:AGL) today announced an intention to sign an agreement supporting the nomination of up to four new directors to the board of TrustPower Limited representing Infratil, Alliant and AGL. The total number of directors will remain at six.
The agreement is part of an intended arrangement that will, when implemented, enable Infratil/Alliant and AGL to equalise their respective shareholdings. It is intended that this arrangement will be entered into next week upon expiry of the 3 business day notice period provided in the Notice & Pause Notification given today in accordance with NZSE Listing Rule 4.5.2.
Infratil and Alliant International own 41.5% of TrustPower. AGL owns 17.7%, and also has voting control over a further 4.2% owned by the Rotorua Energy Charitable Trust (RECT). For the purposes of this arrangement, the Tauranga Energy Consumer Trust (TECT) shareholding of 22.7% forms part of the AGL holding.
Alliant International's CEO, Mr Chris Lindell, indicated that 'Board representation will allow both Infratil and Alliant International to have direct input to the decision making of TrustPower. Our objectives are to help continue to ensure that growth is fully aligned with shareholder value and risks facing TrustPower in the competitive wholesale and retail market are well managed.'
Infratil's view is that TrustPower is well placed to expand as an integrated generation and retailing business and it is expected that growing cohesion between major shareholders will accelerate this growth. A strength of TrustPower is its quality, diversified hydro assets. Infratil is positive on the value of quality generation assets in the New Zealand market and sees medium to long term earnings stability for the sector.
'There aren't many hydro sites left, they're expensive, and New Zealand doesn't have cheap gas or cheap coal' said Infratil Chairman, Kevin O'Connor.
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