Reports say PricewaterhouseCoopers, which is running the sales process on behalf of the New Plymouth District Council and Taranaki Electricity Trust, has received at least 20 expressions of interest for the combined NPDC-TET 49.95% share in Powerco.
Indicative, non-binding bids for Powerco shares were due by tomorrow, but the deadline has been extended to June 18. At least one expression of interest is expected from a Kiwi bidder but not from New Zealand's biggest lines company Vector, which says it is not in the hunt.
Bargain hunters will now be able to bid for 53.6% of Powerco, this country’s second largest lines company, after 3.7% owner the Powerco Wanganui Trust joined the NPDC and TET in the sales process. Any buyers of the 53.6% stake must also launch a full takeover offer for Powerco, which has a market capitalisation of NZ$660.8 million.
However, commentators don’t believe the NPDC or TET will achieve their stated goal of a 25% premium on the share price. “No one is going to offer a 25 percent premium on the shares, as I believe the NPDC and TET have since ‘revalued’ and now want to get a 25 percent premium on net tangible assets, which is a lot lower than the share price,” one commentator told EnergyReview.Net.
Previously reported possible merger talks between Powerco and NGC Holdings are now believed to be on hold due to the sales process, though majority stakeholder AGL is still tipped as being a potential bidder for the 51% of Contact Energy that Edison Mission Energy is selling.
Meanwhile, the New Zealand Refining Company, owner-operator of the Marsden Point Refinery, reports strengthening operating margins for the year to April.
NZRC told the New Zealand Stock Exchange that margins remained high despite a strengthening kiwi dollar (the average exchange rate for the period was US$0.65).
The Ruakaka refinery, just south of Whangarei, processed 6.51 million barrels of product during last January-February for a margin of US$6.54 per barrel, making a final fee of NZ$43.8 million.
This compared to 6.47 million barrels for a US$3.51 per barrel margin and a fee NZ$29.05 million fee during January-February, 2003. Last March-April the figures were 6.47 million barrels, US$4.83 and NZ$33.6 million, compared with 6.61 million barrels, US$3.49 and NZ$29.2 million during January-February of 2003.
Shell, BP, Mobil and Caltex own most of NZRC, which processes over 80% of this country’s refined oil requirements.
