United Energy (UEL) shareholders have approved a joint $1.3 billion takeover by the Alinta/AMP Henderson Global Investors joint venture despite some strong opposition from several small shareholders, including listed investment company Australian Foundation Investment.

The opposition to the deal was generally about the sale price and the capital gains implicaitons for aggrieved small shareholders, many of whom were described 'retirees who bought UEL for its high yield and stable earnings.'

The scheme of arrangement to buy out United shareholders for $3.15 a share was passed with 78% of the vote, just above the required 75%.

The scheme now requires the final court approval and the satisfaction of certain conditions for the closure of the deal.

"Alinta is pleased to have gained the support of the required majority of United Energy shareholders," said Alinta chief executive officer Bob Browning.

"The completion of the scheme is an important part of our plan that will see Alinta emerge as an operator, manager and part owner of approximately $4 billion in regulated energy assets."

United yesterday announced that it had achieved a solid financial result in 2002 with a net profit after tax of $96.2 million, up 25% on the previous year with a dividend payment of 18.25c per share.

Since the announcement of the move to acquire United's network Alinta shares have gone from strength-to-strength, hitting an all-time high of $6.14, before drifting back to $5.50.

The scheme, part of a plan by US group Aquila to sell off its Australian assets, will lead to Alinta controlling 34% of United's Victorian energy network and a 19.9% holding in Victorian gas distributor Multinet, AMP Henderson will control the remaining 66% of United.

Alinta will operate, maintain and manage all the network assets, while a 25% shareholding in its own gas distribution assets will be sold into a new $800 million fund managed by AMP Henderson Global Investors.