Forum Archive Index - June 2001

["Deidre Gunn" <deidre.gunn@clear.net.nz>]

Philip,

Monolithic Enterprises Limited is a bit of mystery to me. I have interpreted
the Announcement to the sharemarket on Friday to mean:

Alliant & Infratil  hold an aggregate in excess of 20% of TrustPower (This
matches the PriceWaterhouse report dated 30 May which states Alliant has
17.7% and Infratil has 26.4%).

Alliant & Infratil may transfer their securities to Monolithic. (This would
mean that if all the current Trustpower securities were transferred to
Monolithic, Monolithic would have approx 44.1%. Monolithic would then have
the shareholding in TrustPower and Alliant and Infratil would have an
interest in Monolithic).

Alliant & Infratil may transfer up to 65% of Trustpower securities, shares
or convertible notes, to Monolithic. (I take this to mean that Alliant and
Infratil will still need to do a lot more buying to get from 44.1% to 65%
between them. Alliant and Infratil may buy the shares and then transfer
their securities to Monolithic. It appears they will need to buy somewhere
in the region of 20.9%. TECT and AGL are suppose to be buying, not selling,
and the public holds 12.7%).

So from what I can tell, I don't think Monolithic changes the situation much
as Alliant and Infratil were always going to work together for a combined
controlling interest. The other two parties, TECT and AGL, will pay a key
part in the equation. 

TECT is wanting to buy 50.39%, according to the notice dated 14/5 and they
currently hold 22.7%. AGL wants to buy 100%, according to the notice dated
21/5 and they currently hold 20.5%.

I'm just guessing, but AGL is the one that needs the most, and it appears
that they are after full ownership and required 90% to be of significant
value to them. So there will need to buy aggressively. Also, I wouldn't be
surprised if anyone of these parties changes their position if they aren't
likely to be successful with gaining control. At the moment all parties have
an equal interest (roughly) and when control is a lost cause, they could
decide to sell their interest - then the public shareholding wouldn't be
important.

So I think the action is still to come.

Does anyone have a different view? Would be glad to know more.


Deidre
Disc: Hold a few

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