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AECT looks forward to higher dividends after IPO - 28 June 2005 |
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Auckland Energy Consumer Trust (AECT) Chairman Warren Kyd today said that the initial public offering (IPO) of shares in Vector is projected to enable higher dividend payments to the AECT, which will then flow on to AECT income beneficiaries.
The AECT will have a 75.1% shareholding in the enlarged Vector. Through this shareholding it will continue to receive dividends from the company, which will be passed on to its income beneficiaries who are, in summary, named electricity account holders in Auckland City, Manukau City and parts of Papakura District.
“Based on information provided in Vector’s prospectus which was registered yesterday, the AECT anticipates receiving a 60 percent higher dividend from the first financial year following the IPO, reflecting the increased size of Vector’s business,” said Mr Kyd.
Commenting on the offer of Vector shares to Trust income beneficiaries, Mr Kyd said he was delighted that tens of thousands of income beneficiaries had pre-registered to take part in the IPO.
“The AECT will continue to represent – and return dividends to – all beneficiaries, but we are also pleased that individual beneficiaries have the opportunity to further invest in Vector if they wish.”
AECT beneficiaries who have pre-registered for the AECT Beneficiary Offer will receive a copy of an Investment Statement from Vector by mail later in the week.
Mr Kyd also noted that the AECT’s 75.1% shareholding enabled it to continue to have the majority vote on any matters put to shareholders. The AECT will also retain important rights as set out in Vector’s new constitution and in the new Deed Recording Essential Operating Requirements signed by the AECT and Vector prior to the launch of the IPO. Both these documents are described in the prospectus.
The rights retained by the AECT include consultation on any network price increases to Trust beneficiaries, and requiring the company to maintain its undergrounding programme.
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Contact:
Warren Kyd
Chairman, AECT
Ph: 027 446 2489
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