Sharechat Logo

Fair price for TrustPower increases

By Phil Boeyen, ShareChat Business News Editor

Wednesday 6th June 2001

Text too small?
An appraisal report into Australian Gas Light's offer for TrustPower (NZSE: TPW) says any offer at $3.43 or higher is fair.

That recommendation means that the upper range of AGL's offer - which has been set between $3.30 and $3.60 - fits the bill.

However the price range is higher than that outlined in a report released just weeks ago by PricewaterhouseCoopers, which stated a fair price for TrustPower equities was between $3.23 to $3.62.

That report had been commissioned in response to restricted transfer notices from Alliant International, Infratil (NZSE: IFT) and Tauranga Energy Consumer Trust, but each of those parties only wanted to increase their stake, while AGL wants to take 100% of the company.

Often when a potential buyer wants to take over another company it is expected to pay a higher premium for total control than if it was just raising its shareholding.

In a letter to TrustPower shareholders the company's chairman, Harold Titter, says he recommends shareholders read the appraisal report and consult a professional adviser before deciding to accept or reject any offer.

TrustPower shares closed Wednesday unchanged at $3.50.

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

TrustPower, Ngai Tahu Holdings may invest $106M in Ruataniwha water scheme
TrustPower generated less energy for fewer customers in the first quarter
Transpower to pay government special div of $65.7M from d-cyphaTrade sale
Transpower sells derivatives trading unit d-cyphaTrade to ASX for A$55 mln
TrustPower pays $13.7 million for Energy Direct NZ to widen customer base
TrustPower FY earnings fall 6 percent on dwindling customers, thinner margins; shares gain
TrustPower sets interest rate on seven- year bonds
TrustPower looks to raise $125M in bond sale
Transpower runs $30 million over budget on North Island upgrade
TrustPower pushes margins, sheds customers for 16% earnings rise