Shareholders in NZOG will receive one Pan Pacific share in addition to each share they hold in NZOG. The distribution will absorb 115.2 million of NZOG's 126.4m shares in PPP.

Directors of NZOG said that recognition of Pan Pacific's activities tends to be diluted at the NZOG share level. "By owning the PPP shares direct, NZOG's shareholders will be better able to appraise and make their own decisions on this investment," the company said. "The separation of ownership of the two companies will also enable NZOG to allocate its funds to its direct activities, without inhibiting PPP from raising any new equity capital if needed in the future."

NZOG added there are presently no plans to change the existing working relationship between the two companies, which share staff and facilities to a substantial degree.