The Wellington-based panel yesterday cleared Prime, major Powerco shareholder New Plymouth District Council and its advisors of any wrongdoing in relation to council’s deal - brokered by PricewaterhouseCoopers - for Sydney broker Tricom Equities to buy “excess” Prime bonds.
The takeovers panel had said the NPDC-Tricom deal might breach the takeover code, which required Prime’s takeover offer to be made on the same terms and provide the same consideration for all shareholders.
“The Takeovers Panel announcement is a positive outcome and means that the takeover offer remains on track,” said Prime Infrastructure Management managing director Chris Chapman from Brisbane.
This followed Friday’s acceptance by the NPDC, Taranaki Electricity Trust and Powerco Wanganui Trust of Prime’s NZ$2.15 per share offer for the local bodies’ 53.65% stake in Powerco. They are to be paid 63.5% in cash and 37.5% on Prime bonds, though the deal is subject to scaling.
Only Finance Minister Michael Cullen’s refusal to allow the Prime purchase to go ahead can now stop Prime completing its takeover of New Plymouth-headquartered Powerco.