Vector's offer for UnitedNetworks goes unconditional

By NZPA

Friday 4th October 2002

Vector's takeover offer for the country's largest electricity and gas distribution company, UnitedNetworks, has gone unconditional.

Seventy percent stakeholder US-based Aquila announced today that it had gained the requisite approval from its banks to accept Vector's bid.

"This means Vector's takeover offer of $9.90 a share to all UnitedNetworks' shareholders is now unconditional," the Auckland electricity network's chief executive, Patrick Strange said.

Shareholders who had already returned their acceptance forms would be paid within the next seven days.

Vector was announced as the successful bidder for UnitedNetworks in early September. It launched a full takeover offer worth $1.5 billion two weeks later.

UnitedNetworks' independent directors have recommended the offer.

Vector also confirmed today that it now held or controlled more than 76 percent of UnitedNetworks shares.

As a consequence, UnitedNetworks announced a change of directors. Aquila-appointed directors Keith Stamm, Paul Perkins and Dan Warnock resigned, leaving the way clear for Vector directors Michael Stiassny and Wayne Boyd, plus Mr Strange.

Mr Warnock would remain as chief executive officer.

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