Takeovers Panel's Reasons for Powerco Decision


15 October 2004

The Takeovers Panel has today released its statement of reasons for the determination made on Wednesday 13 October that Prime Infrastructure Networks (New Zealand) Limited, New Plymouth District Council, Taranaki Electricity Trust Incorporated, Wanganui Trust Incorporated and PricewaterhouseCoopers had acted in compliance with the Code in relation to Prime Infrastructure's takeover offer for Powerco Limited.

The issue considered by the Panel concerned a resale facility entered into on Monday 4 October 2004 between Tricom Equities Limited and PricewaterhouseCoopers on behalf of New Plymouth District Council and Taranaki Electricity Trust Incorporated.

The Panel needed to establish whether the resale facility constituted a benefit provided by Prime Infrastructure to the Council and the Trust and not to other shareholders.

The Panel found that no such benefit was provided and that the Council and the Trust entered into the facility at their own cost.

The full text of the Panel's statement of reasons is on the Panel's website at www.takeovers.govt.nz