The NGC board today declared the special dividend of 9 cents per share, fully imputed and to be paid on November 3, following Monday’s agreement by Australia Gas Light company to sell its 66.05% shareholding in NGC to Auckland energy networks company Vector.

When concluded, this agreement will represent a shareholder continuity break resulting in the forfeiture of any imputation credits existing at that time. Accordingly, the board has authorised a special dividend payment so shareholders can receive the benefit of available imputation credits before the AGL sale.

Vector is to pay NZ$3 per share, or NZ$877 million for AGL’s stake, less any dividend payment prior to completion.

Commentators are still predicting few of NGC’s 15,000 minority shareholders will find the Vector bid attractive, though international hedge funds will probably leave. Most minority stakeholders will wait until the independent appraisal report on the offer and the recommendation from NGC's independent directors.