Pyne Gould takeover of SEU unconditional

Pyne Gould says it will continue to take acceptances until the end of the week and will move to compulsorily acquire any remaining shares.

Unlisted PGC began its takeover bid for the cash-rich SEU last November, despite the fact that in August SEU managing director, George Gould, said the company was on the verge of announcing new investments.

Unlisted PGC instead has been making a number of deals of its own, including the purchase of Auckland-based Marac finance in December for $41 million.

South Eastern Utilities has been sitting on cash reserves of around $68 million since early in 1999, when it sold its Wairarapa electricity assets.

PGC's first offer of $1.07 a share was later amended to $1.08 per share, plus a share of SEU's interest in Christchurch-based application service provider company, Genztech, which the KPMG appraisal report put at around 5 cents per share.

Although Pyne Gould has denied its takeover of SEU will provide a backdoor listing for the company, some market commentators believe it could provide an option for the company to float its stable of finance businesses.

These include Allied Finance, Frontline Finance and Marac, as well as the finance business associated with the company's rural arm, Pyne Gould Guiness.

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