KCE update on share buyback process
For Immediate Release
17 May 2013
KCE update on share buyback process
King Country Energy (KCE) acquired 100% of the Mangahao power station assets in 2012. The rationale for the acquisition was to enhance KCE’s ability to maintain and grow value for the benefit of all Shareholders in an increasingly competitive and challenging market.
As a result of the acquisition, KCE was required to purchase the KCE shares held by shareholders who voted against the major transaction resolution for the acquisition. This is a requirement under the Companies Act 1993. These shares were acquired at $4.75 each.
A number of shareholders whose shares were purchased by KCE objected to the purchase price and sought arbitration of the price under s112 of the Companies Act 1993. The total number of shares subject to the price dispute was 927,473 shares and the dispute was referred to Arbitration. Under the provisions of the Arbitration Act 1996 the award and details determined by the Arbitrator remain confidential.
Following the award there has been a reduction in equity of KCE, which in the opinion of the Directors has no impact on the rationale or the benefits flowing from the Mangahao acquisition.
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