http://stockwatch.nzherald.co.nz/ann...ticleId=103723
Look's like the country's wealthiest trust is flexing some muscle.... of course if they listed their asset they could disclose everything.
:D
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http://stockwatch.nzherald.co.nz/ann...ticleId=103723
Look's like the country's wealthiest trust is flexing some muscle.... of course if they listed their asset they could disclose everything.
:D
What the heck does all that mean? As a Vector bondholder and wouldbe shareholder I suppose I should plough through all that legalistic stuff but I've got better things to do. I'll wait to see what the Herald etc make of it tomorrow.
It means the trustees want the board of Vector to include them a bit more in their decision-making process .... they don't want them running off on a wild spending exercises that the company's only shareholder is never going to approve.Quote:
quote:Originally posted by Lawso
What the heck does all that mean? As a Vector bondholder and wouldbe shareholder I suppose I should plough through all that legalistic stuff but I've got better things to do. I'll wait to see what the Herald etc make of it tomorrow.
The technical hitch in this is that because your bonds are listed the company feels they cannot disclose information to one shareholders without disclosing it to the bond holders (i,.e, the exchange)
It might be that the company has lodged this expecting not to get the dispensation - so that it doesn't have to share infor with the trustees ... I would hope that isn't the case
Thanks for that, WS. I guess there are tensions between the trustees and the board that will not be resolved unless there are drastic personnel changes. With the present setup I can't see any prospect of a Vector IPO.
I think the IPO is closer than ever because of the will of the majority of trustees .... they also need to do it early in their term as trusteesQuote:
quote:Originally posted by Lawso
Thanks for that, WS. I guess there are tensions between the trustees and the board that will not be resolved unless there are drastic personnel changes. With the present setup I can't see any prospect of a Vector IPO.
Hope you're right. You're obviously closer to the scene than I am.
Quote:
According to comment in Herald on Stuff etc etc.
It appears that a vote is scheduled Thursday night on "Project Nugget"[xx(], whether to do an IPO to raise money to buy NGC [:p]. Which way the vote goes depends upon whether AECT trustee John Collinge can vote and there is a court hearing today to decide this. Read the articles if you are actually interested on all the dirt of this one.
I predict that the court hearing will ajourn to a later date, reserve judgement, or decide it can not decide: i.e. do anything rather than make a decision in time. Could be wrong, often am [:0]
We wait and see [|)]
Isn't it bizarre that the one person who should be pushing for the partial privatisation - a former commercial lawyer - should now be holding it up because he has been politically shafted and wants to be all petulant. Meanwhile the trust's consumers might miss out on a great opportunity to grow their investment and the rest of us miss out on a great investment opportunity. Hopefully some sanity will prevail - though no doubt the lefty media will say the asset shouldn't be sold (even though the asset will actually get bigger)!
As I predicted two posts ago, the court has made a decision.
John Collinge will not be able to vote tomorrow and it now expected that the AECT will vote in favour of a partial float of VECTOR. [8D] Start stuffing your piggy banks for the IPO. :)
PS The prediction that came true is "Could be wrong, often am": Now that is hedgeing. [B)]
This would be great for the market if it can be made to happen.
Let's hope the chairman uses the power in his hands and this asset grows..... I must say I've enjoyed the ride on NGC in the past couple of years, might have to sell some for the Vector IPO
Yep...the family cats are even sharpening their pencils waiting for the application forms
For the latest episode of the "The Vector Fight" go to
http://www.stuff.co.nz/stuff/0,2106,3036155a13,00.html
Seems that the anti Project Nugget faction are using the rules to the max.
Who needs TV soaps when you have got this :D
Paper Tigers 100th post [8D]
This is a good read ...
http://www.nbr.co.nz/home/column_art...Business+Today
Morphues
Thanks - interesting indeed.
http://www.stuff.co.nz/stuff/0,2106,3037438a13,00.html
or
http://www.nzherald.co.nz/business/b...thetickercode=
It's all gone back to court again. [}:)]
This is great stuff, I can not wait for the major motion picture version. :D
Keep stuffing your piggy banks for the IPO[:p][:p], perhaps[?]
Stay tuned for the next episode. [8D]
Hmm, NBR - probably not a good idea to criticise the Herald whilst running an ad for the Herald on the same page. Not a nice way to treat your advertisers. [8D]Quote:
quote:Originally posted by Morpheus
This is a good read ...
http://www.nbr.co.nz/home/column_art...Business+Today
A new week and the tension builds:
http://www.stuff.co.nz/stuff/0,2106,3038518a13,00.html
apparently Vector are going to bid for NGC today. :)
http://www.nzherald.co.nz/business/b...thetickercode=
we don't know that for sure. :(
Stay tuned folks :D
Welcome to your daily episode of the Vector saga :D
dum de dum de dum de dum
dum de dum de dum dum
dum de dum de dum de dum
dum de dum de de dum
(Opening music ;))
http://www.stuff.co.nz/stuff/0,2106,3039710a13,00.html
[Its back to court to get three trustees removed]
http://www.nzherald.co.nz/business/b...thetickercode=
[The messing about at the trust may impede vectors ability to bid for NGC, many companies interested in AGL's stake and closing date for offers 6-Oct].
Will Vector bid?
Will all the mucking around at the court preclude this?
Does it really matter?
Does anyone care anymore?
Where's the bottle gone?
Seems to me there is a lot of bottle being shown and some are fighting hard to see this one come through.Quote:
quote:Originally posted by Paper Tiger
http://www.nzherald.co.nz/business/b...thetickercode=
[The messing about at the trust may impede vectors ability to bid for NGC, many companies interested in AGL's stake and closing date for offers 6-Oct].
Will Vector bid?
Will all the mucking around at the court preclude this?
Does it really matter?
Does anyone care anymore?
Where's the bottle gone?
Quote:
quote:
AGL agrees to sell Vector its share of NGC
11.10.2004
9.45am
The Australian Gas Light Company (AGL) has agreed to sell its 66.05 per cent stake in gas pipelines company NGC to Vector.
Vector Chairman Michael Stiassny announced the agreement today.
The deal is worth $877.4 million in total with AGL agreeing to accept $3.00 a share. NGC shares traded on Friday at $3.06.
Mr Stiassny said the purchase of a stake in NGC was a major achievement for the company, and was consistent with Vector's long term strategy for growth as an owner and manager of critical infrastructure assets.
"The purchase of a majority shareholding in NGC is an exciting step forward for Vector as it provides the company with a number of complementary businesses for its current portfolio.
"The company has a range of high quality assets which will not only enhance Vector's strategic position, but also continue to play a major role in the country's energy industry."
Completion of the acquisition is subject to an exemption being granted by the Takeovers Panel, which would allow AGL to sell its New Zealand holding company (AGL NZ Ltd) to Vector, rather than its NGC shares. This company holds 64.2 per cent of NGC. AGL also directly owns a further 1.8 per cent stake.
An offer is expected to be made to NGC's other shareholders in due course on an equivalent basis.
The offer is also conditional on Commerce Commission approval and an exemption under the Electricity Industry Reform Act (EIRA) in regard to NGC's interest in electricity generation.
Mr Stiassny said the deal was a significant milestone for New Zealand.
"Given recent public debate on foreign ownership, we are pleased to be able to bring another valuable infrastructure asset back under majority New Zealand ownership."
The deal with AGL may see Vector floated on the share market.
- NZPA
seems so :DQuote:
quote:Originally posted by Lawso
Hope you're right. You're obviously closer to the scene than I am.
Well done, ws.
I'm saving some pennies for the IPO next year, tho' hopefully as a bondholder I'll get an allocation at a good price.
The most interesting thing is that most of the management of Vector wil find life in the truely public arena very tough.... their arrogance will not sit well with NZX strictures. I think it will be fabulous to see a lot more scrutiny of what is one of our largest companies.
Same goes for the Auckland Energu Consumer Trust... their roles as major owner of a listed organisation should lead to a bit more discipline.
I reckon this will ultimately serve as a great example of why such organisations should have at least a partial listing.
For investors, the great thing is that you know they will maximise dividends... after all, Trustees want to be reelected by the people getting the dividends from the AECT.
If you ar looking for a retirement income stream then this will be one of the safest investments around.
I wonder. I am currently a bondholder, but i am concerned at the amount of debt on their balancesheet. While this will be nullified slightly by selling 25%, there is still a mountain of money owed to the Aussie banks.Quote:
quote:Originally posted by wsheridan
If you ar looking for a retirement income stream then this will be one of the safest investments around.
My current feeling is to go through the IPO (as both bondholder and Mecury customer) and stag the whole thing.
If you go through the IPO then they will use the funds raised to repay debt.... meaning the very concern you had about potential high debt will no longer exist [B)]Quote:
quote:Originally posted by StainlessSteelRat
I wonder. I am currently a bondholder, but i am concerned at the amount of debt on their balancesheet. While this will be nullified slightly by selling 25%, there is still a mountain of money owed to the Aussie banks.Quote:
quote:Originally posted by wsheridan
If you ar looking for a retirement income stream then this will be one of the safest investments around.
My current feeling is to go through the IPO (as both bondholder and Mecury customer) and stag the whole thing.
Opportunity to participate in Vector thru a preferential bond holder allocation (meaning Bewares, ABC's and other rip off investment Bankers cannot rob us of an entitlement quite so easily this time - but beware they'll be working on ways to steal the pot of gold) is one of the best things to happen to NZ investors since the float of Contact. Buy as many as you can afford and hold em is my advice.Quote:
quote:Originally posted by StainlessSteelRat
I wonder. I am currently a bondholder, but i am concerned at the amount of debt on their balancesheet. While this will be nullified slightly by selling 25%, there is still a mountain of money owed to the Aussie banks.Quote:
quote:Originally posted by wsheridan
If you ar looking for a retirement income stream then this will be one of the safest investments around.
My current feeling is to go through the IPO (as both bondholder and Mecury customer) and stag the whole thing.
abn amro will make a killin.... but that shouldn't surprise given how close they have been to this for many years.
I'm holding onto NGC in expectation of a scrip-based offer in the IPO.
Good move.Quote:
quote:Originally posted by wsheridan
abn amro will make a killin.... but that shouldn't surprise given how close they have been to this for many years.
I'm holding onto NGC in expectation of a scrip-based offer in the IPO.
Is it worth buying into Vector bonds now?
Do they become more valuable in anticipation of preferential treatment in an IPO?
I'm not so sure. VCT has $1.9bn in term liabilities (D/E of 66%), which will increase by $800m if they buy 66% of NGC, or $1.3bn if they achieve a full takeover.Quote:
quote:Originally posted by wsheridan
If you go through the IPO then they will use the funds raised to repay debt.... meaning the very concern you had about potential high debt will no longer exist [B)]
So, D/E ratio will become $2.7bn on assets of $3.7bn (incl 66% of NGC) or $3.2bn on assets of $4.3bn (100% of NGC).
They have stated that they will float 25% (presumably of the total) which will generate either $900m or $1.1bn. If they use all of this to reduce their debt, the D/E will stand at 48% (regardless of the amount of NGC bought).
With investors becoming more "risk averse", especially regarding debt, this will still be a high ratio and one that will bear closer attention, especially given a current return on equity of 6%.
For me, VCT is a salient lesson for those who are fervent proponents of public ownership. They are wallowing under a mountain of debt, and it may well take more than a quick sale of the family jewels to get them on track.
With the falling in yield of V bonds I assume that the lower they go the more they cost? at what point (price/cost) are they not worth buying? What are/will be the terms of any intitlement to Victor shares, 1 for every 2 bonds held + a 10% discount to the public issue price? after which I suspect that the bonds will head back up to their former price approx 8%, will the whole exercise be still worth it I wonder????
I see the Auckland Energy Consumer Trust agm is tomorrow.... is anyone able to go to this?
I'd be interested to see what the fireworks show is like :D
whatsup:
According to Vector, if the IPO happens, which is very likely, the IPO will most likely happen at the end of 2005, which means a buyer can expect
- 3 more interest payments up to the 15-December-2005
and needs to pay at a current yield of 6.30%
- accrued interests since 15-June-2004 to now
- approx. 6.7% premium on capital
- brokerage
This means that any buyer at the current yield will still be making a small amount of money via interests payments...
but the cream on the cake will be a guaranteed entitlement shares in the IPO at a 2.5% discount...
and a very successful IPO it will be!!
Read: http://www.nzherald.co.nz/business/b...thetickercode=
Where will CEN shares be by the time that Vector IPO's ... and CEN will pay excellent divs in the meantime !! That 2.5% discount could turn out to be a very expensive carrot !!!
Disc: HOLD CEN
nelehdine:
We will see...but in terms of pay-out, cen-dividend = 5.60%, while vector bonds still pay 6.3% for the time remaining.
Also remember, successful IPO's can return 30%+ on the day of listing.
Furthermore:
Imagine your auntie from Russia sends you $50.000 and because you are a very good person, GOD/Godess, in a moment of infinite love, grants you a sure entitlement in Vector shares. The shares are listed at an issue price of $2.50.
20.000 shares = $50.000.
Based on a current yield of 6.3% = approx. $1.10/bond, a bondholder buys
20.000 shares = $44.000
(because of the conversion ratio $0.50 of share for $1.00 of bonds, in order to get 20.000 shares a person needs to hold 40.000 bonds)
Consequence: Any person who thinks Vector shares will take the opportunity now to get them via the bonds.
Hoepfully take2 will get past the CC :)Quote:
quote:
Vector announced today that it has reached an agreement with the Australian Gas Light Company (AGL) to directly purchase its majority stake in NGC Holdings Limited (NGC) at $2.91 per share.
Vector Chairman Michael Stiassny says the company is very pleased with the outcome which he says represents a further milestone in the development of a key, New Zealand focused infrastructure management company.
Vector will now be making a full takeover offer to all NGC shareholders within the timeframes set down by the Takeovers Code. AGL will sell to Vector under this offer.
The offer is still conditional upon gaining approvals from the Commerce Commission.
Beyond the full takeover offer, Mr Stiassny says Vector is looking forward to working with the NGC Board in continuing to successfully deliver leading energy services within the New Zealand market.
Ends
...in the meantime vector bonds trading at a yield of 6.25% as institutions collect them for the IPO :)
...and we keep telling the wife we can't move until after the IPO
[quote]quote:
VCT
23/02/2005
HALFYR
REL: 1505 HRS Vector Limited
HALFYR: VCT: HY to 31/12/2004 $43.321m ($29.293m) +47.9%
CONSOLIDATED OPERATING STATEMENT FOR THE HALF YEAR ENDED 31/12/2004 FOR
LISTED ISSUER: VECTOR LIMITED
Audited NZ$'000
Current Period; (Previous Corresponding Period)
OPERATING REVENUE
Trading revenue 319,111 ; 280,080
Other revenue 26,723 ; 10,268
Total Operating Revenue 345,834 ; 290,348
OPERATING SURPLUS (DEFICIT)
BEFORE TAXATION 74,306 ; 55,569
Less taxation on operating profit (30,164);(26,389)
OPERATING SURPLUS (DEFICIT) AFTER TAX 44,142 ; 29,180
Extraordinary items after tax - ; -
Unrealised net change in value
of investment properties - ; -
NET SURPLUS (DEFICIT) FOR THE PERIOD 44,142 ; 29,180
Net Surplus (Deficit) attributable
to minority interests 821 ; (113)
NET SURPLUS (DEFICIT) ATTRIBUTABLE TO MEMBERS OF THE LISTED ISSUER
43,321 ; 29,293
EPS 14.4 cps 9.8 cps
Interim/Final/Special Dividend: N/A
VECTOR ANNOUNCES STRONG HALF-YEAR PROFIT
Vector today announced an audited net surplus after-tax of $43.3 million for
the six-month period to 31 December 2004, an increase of 47.9% on the
previous corresponding period.
Vector CEO Mark Franklin says the interim result reflects a solid operational
performance across its core businesses.
"The company's result was ahead of expectations and due largely to higher
operational revenue from organic growth, increased volumes on the network due
to unseasonably cold weather and the efficient management of costs over the
six-month period."
Vector's EBITDA for the interim period was $206.5 million compared to $183.2
million for the previous corresponding period - an increase of 12.7%.
Vector's cash from operations also increased by $31.2 million against the
same period last year to $149 million.
A strong building sector saw growth in both connections and volume for
Vector's electricity and gas businesses. Growth was also enhanced on Vector's
gas network by the success of its channel partner programme and the promotion
of gas which has led to increased share in the new building market.
Increased demand for high-speed broadband services resulted in record growth
for Vector Communications. Revenue for the six-month period increased by 48%
on the same period last year while costs remained relatively steady due to an
increased focus on streamlining its network and operational processes.
Vector Chairman Michael Stiassny says one of the highlights of the interim
period was the acquisition of a 66% stake in NGC Holdings Limited (NGC).
"This acquisition was a significant achievement, and was in line with the
company's long-term strategic, operational and growth objectives. NGC has a
portfolio of valuable assets and Vector is looking forward to the benefits it
will bring given NGC's track record as a strong operational performer."
Vector's acquisition of the majority stake in NGC took place near the end of
the interim period, resulting in 18 days of NGC's operations being included
in Vector's six-month result.
The acquisition also saw a significant increase in the size of Vector's
balance sheet, with total assets increasing by $1.7 billion to $4.7 billion.
Despite an intense focus on cost control, Mr Franklin says there were some
increases in expenses due to subsequent operational and growth activity.
"Vector's interim result was impacted by higher operating expenditure,
primarily transmission costs, and additional financing costs. Increased
electricity consumption and peak demand on the networks saw an increase in
Transpower charges and the company also incurred additional costs in other
areas such as local council rates and regulatory expenses."
Vector's net interest costs also rose during the period due to the incre
Don't you think $43m in profit is a little low for a company with $3 billion in assets? That's about 1.4%.
If you owned $3b worth of office buildings you'd be hoping for $300m in profit or 10%.
Of that $3b only $2.2b is property, plant and equipment and it is a half year result (although the good half).
There is a lot of infrastructure with this game but at least it generally lasts a long time.
PS Contact has $3.9b of pp&e and they acheived $144m for a year.
yes, nothing in this result to suggest accumulation of bonds has not been a good strategy :)
Contact's profit/asset ratio of 3.7% is not very good either.Quote:
quote:Originally posted by Paper Tiger
Of that $3b only $2.2b is property, plant and equipment and it is a half year result (although the good half).
There is a lot of infrastructure with this game but at least it generally lasts a long time.
PS Contact has $3.9b of pp&e and they acheived $144m for a year.
Do many analysists use a profit/asset ratio to value companies?
wisheridan:
yes, nothing in this result to suggest accumulation of bonds has not been a good strategy
Yes, at times, even a blind chicken like me finds a grain :)
I received a letter yesterday as a bondholder from a company called 'Ross Investments':
Dear Bondholder,
We are writing to you as a bond holder in Vector Ltd.
Ross Investments buys securities in companies and trusts which have financial problems and/or which have a limited market. We also provide small shareholders with a facility to exit their investment economically. Hence wqe are writing to you with an offer to buy all your Capital Bonds in Vector Ltd.
Our offer is 90.5 cents per Capital Bond. Details of the offer are shown below. Upon recipt of your duly signed and dated transfer form, a cheque together with a contract note for the sale with be mailed to you within 5 working days. You will receive the TOTAL amount shown in the box 'Value of this offer'.
In deciding whether to sell, please consider the following:
- Accepting this offer gives you IMMEDIATE CASH which should be TAX FREE to you.
- There are no costs to you eg brokerage/commission, in selling your capital bonds to Ross Investments.
- Your acceptance of the offer will finalise your involvement with Vector (unless you hold a series of bonds.
Etc etc....
Yours sincerely
Robert D Ross
General Manager
I am not considering selling, and wish I had some more - especially if paying 90.5 cents!! I have only got a few - $5K which is currently worth about $5,475 (less commission), which is about a grand better than their offer of $4,525.00.
There is a ready market for these, and they are almost implying that the company is in financial problems. Suppose also banking on the fact holders may not necessarily know about the potential of a partial sharefloat, and likely preferential allocation to bondholders.
I am going to give them a call tomorrow - just hope no little old ladies, or anybody else for that matter, accept the offer! :(
SSB
They tried the same with Brierly Bonds.
Offered to buy them at well below market price - 80 cents or something when they were trading for close to a dollar. Amazingly some people did take up their offer even though they could have sold their bonds for more on the market even after paying brokerage.
In the end my broker sent me a letter saying not to sell to Ross Investments.
Sounds as Ross Investments is a Nigerian investment scam?
Ross crawls out from under an Australian rock every now and again and fleeces little ol ladies and the gullible out of their bonds at below market. He has been admonished many times by NZ authorities. maybe its time he did time [}:)][}:)]Quote:
quote:Originally posted by whatsup
Sounds as Ross Investments is a Nigerian investment scam?
Usually picks on coys that perhaps could be in financial stress Brierley for example earlier on. Picking on Vector wow. I have read the offer that Ross sent to one Vector holder and imo it is tountamount to fraud. The offer suggests Vector either has financial problems (patently untrue as evidenced by the half yearly result to 31/12) or the bonds lack a market (also untrue - looking at the debth of VCT010's there is over 1m sought thru NZX at present at yields ranging from 5.4 to 5.6% pa. This equates to $109.48 per $100.
Come on Vector this guy is giving you a bad name, come on NZ Secys Comm, Commerce Comm and Consumer and any other do good org out there, get on your high horses and bring this guy to justice.
Please don't use slaps with wet bus tickets this time around in the ring with Ross. He needs more than a slap and a tickle before he will desist in trying to rob NZ's more vulnerable investors.
Where did they get the list of bondholders from? Either from:
- The company itself
- Or Computershare
No doubt they have to pay for it, but they shouldn't give access to lists to a company such as this.
Maybe someone should complain to Fair Go - at least would get publicity about it!! :D
SSB
PS - Didn't get around to giving them a call today.
I received his missive and sent it back with a rude note enclosed. I encourage others to do the same - if enough people respond this way it will up the costs of his mailout and be a bit of a pain to his office staff. Who knows, might even deter future campaigns?
Sending back the pre-paid envelope with nothing inside is another way to p#ss him off perhaps.Quote:
quote:Originally posted by Bobby_Fischer
I received his missive and sent it back with a rude note enclosed. I encourage others to do the same - if enough people respond this way it will up the costs of his mailout and be a bit of a pain to his office staff. Who knows, might even deter future campaigns?
Vector attacks bond Scavenge
08.03.05
By Chris Daniels
Investment ScavengerEBob Ross is back in town, this time offering Vector capital bondholders the deal of a lifetime - sell him nearly $11,000 of bonds and get paid about $9000.
Auckland-based energy network company Vector is angry at the way its bondholders have been approached by the Australian, saying names and addresses should not be available for such purposes.
A retired dentist based in Bendigo, Victoria, Ross has come under fire for making similar offers over the past few years.
He was warned by the Commerce Commission in June 2003 that a similar offer he made to BIL International investors to buy debt securities was misleading and deceptive.
There is nothing illegal about offering bond or shareholders below-market prices, but the commission is interested in Ross because of the possibility his unsolicited letters may breach the Fair Trading Act.
The letter to bondholders stated: "Ross Investments buys securities in companies and trusts which have financial problems and/or which have a limited market."
Vector said the letter was "inappropriate and misleading" and implied financial problems.
"It is unfortunate organisations such as Ross Investments are legally able to gain access to such databases and use them in this way," it said.
"Vector has referred the matter to the appropriate regulatory authorities and strongly recommends that all bondholders who receive the letter do not accept the offer before seeking independent advice."
Ross told the Business Herald yesterday that he was not implying there was any trouble at Vector. Ross Investments "normally" targeted firms in financial difficulty or struggling - which did not mean Vector.
The company had been in business for 16 years, often buying from people who were "winding up" estates and who might not know a broker. Brokers often required extra paperwork and could not be bothered dealing with small parcels.
Ross Investments would pay money quicker than brokers and was good value for those with small holdings, he said. "It's a reasonable price," Ross said.
Direct Broking director David Speight made a complaint to the commission about the offer Ross made last year to Kiwi Income Property Trust unit holders.
Speight said Ross was again making misleading claims in letters to Vector bondholders. It was not true there was limited market for the bonds, as $7.87 million had changed hands since February 28.
Ross was offering $9050 for 10,000 bonds. Speight said a client selling the same amount through Direct Broking would pay $54.75 brokerage, but end up with $10,894 for their efforts.
"There's wall-to-wall buyers and no sellers," he said.
Vector bonds, while paying 9.75 per cent interest, also carry preferential rights in the companys looming partial privatisation and initial public offering of shares.
Leading share and bond registry Computershare has asked the Securities Commission to investigate a law change, so names and addresses of bondholders do not have to be provided to companies such as Ross Investments.
Securities Act law covers the sale of bonds and shares, but has no control over what happens when they are later traded. A new securities legislation bill before Parliaments Commerce Select Committee will cover general "dealing misconduct".
Trust threatens to unplug Vector float
26.03.05
By PAUL PANCKHURST
Energy giant Vector's share float - the biggest planned for New Zealand in 2005 - may be killed by the company's owner, the Auckland Energy Consumers Trust.
Vector's management and board are committed to a float of 24.9 per cent of the company after spending $880 million last year on a 66 per cent stake in gas transmission and distribution company NGC.
However, the trust is poised to appoint an investment bank to assess alternative fundraising deals, including a proposal from an Australian company that invests in energy assets, DUET (Diversified Utility and Energy Trusts).
Tensions are high between the trust and the growth-hungry company that it owns. The trust itself - famously dysfunctional - also appears to be split into two factions.
New Zealand's largest consumer trust represents the 290,000 consumers in Auckland City, Manukau City and parts of Papakura who share Vector's profits via credits on their power bills.
Vector is a big business. It delivers electricity and gas in the Auckland and Wellington regions and has assets of $4.76 billion and debt of $3.1 billion.
Vector's board includes chairman Michael Stiassny (Ferrier Hodgson), Tony Gibbs (Guinness Peat Group), Greg Muir (Pumpkin Patch) and John Goulter (former managing director of Auckland Airport).
A source said some trustees were "trying to backtrack" on an initial public offering of shares expected in the third quarter of this year.
"The trust are fighting among themselves about whether there should be an IPO or a private equity deal."
A financial markets source said a deal with DUET would involve a split of Vector assets - with the trust retaining the Auckland assets - and a joint management company. DUET is managed by Macquarie Bank and AMP Capital.
DUET is believed to have shown an interest last year in Australian Gas Light's 66 per cent stake in New Zealand gas company NGC - the stake later bought by Vector.
It is understood DUET is not the only party interested in a deal.
One of the trustees, John Collinge, said the trust was divided between trustees backing a float "at any cost" and those with open minds.
Sharemarket investors had thought the float a certainty.
The notion of alternatives contrasts with trust chairman Warren Kyd's statement on November 3, when he "confirmed the public offering will take place in the next 12 months".
But Kyd now says: "The original transaction" - he would not spell out what that meant - "did require us to look at alternatives."
Vector sold $354 million of PIPES - pre-IPO equity securities - and raised $526 million of senior debt to buy the stake in NGC.
Vector's financial adviser, investment bank ABN Amro, holds the PIPES, which convert into ordinary shares if the money is not repaid by December 13. That would mean ABN Amro would own a chunk of Vector.
Vector's six-month report said the money must be repaid "from the proceeds of an IPO".
The five people on the consumer trust are: Kyd, deputy chairman Shale Chambers, Michael Buczkowski, Collinge and Karen Sherry. Four of the five were elected on the Auckland Citizens & Ratepayers Now ticket, which supported partial privatisation under certain conditions.
However, the four fell out, with Collinge and Buczkowski opposing a float and Kyd and Sherry supporting one.
The fifth trustee, Chambers, was elected on a no-privatisation platform.
Last year, Kyd went to the High Court to have Collinge barred from a trust vote that could have blocked Vector's plans to buy the NGC stake and then float on the sharemarket.
A judge ruled Collinge had a conflict of interest because of his family's ownership of $200,000 of Vector bonds. (Collinge still has the interest in the bonds.)
Kyd used his casting vote to give the plans the green light.
If Vector do not float soon via an IPO, then the NZX has been grossly misled, as has NGC shareholders.
Not too mention VCT have gone too far down the road incurring massive debt etc.
It still remains such a redundant structure & the Trust had better get used to public scrunity, i would image those opposed to it will be replaced by trustees in favour, should they decide to derail this.
Hold NGC & will do until i receive a scrip offer from Vector, anything less and VCT will never get 90% of NGC.
the trust is a waste of time IMO.
its been ages since this topic has been told, i mean just get the thing IPO'ed -_-
i mean trust members taking each other to court -_-
Vector silent on sharemarket listing - or not
30.03.05
By CHRIS DANIELS
Energy network company Vector is keeping mum on news that its only shareholder, the Auckland Energy Consumer Trust, is exploring ways to avoid a sharemarket listing.
Vectors corporate bonds - which carry preferential rights in any share float - fell in price yesterday, their yields rising to more than 5 per cent.
Despite both company and trust saying a sharemarket listing will take place before the end of the year, the trust is about to appoint an investment bank to assess alternative fundraising deals.
These include a proposal from an Australian company that invests in energy assets, Duet (Diversified Utility and Energy Trusts).
A Duet spokeswoman said the company did not comment on "market speculation".
The fund has yet to make any investments in New Zealand since listing in Australia last year.
It does, however, say it wants to invest in energy assets on this side of the Tasman.
News of the trust investigating float alternatives, first reported in the Weekend Herald, has triggered a fall in the popularity of its corporate bonds.
Direct Broking director David Speight said the news had "definitely had an impact".
The previous price premium that was in the market before, based on the expectation of a float, was not there.
Crunch time for share float as Vector and trust meet
13.04.05
By PAUL PANCKHURST
It is crunch time for the biggest sharemarket float planned for this year - the $550 million to $650 million initial public offering by energy giant Vector.
The company's owner, the Auckland Energy Consumers Trust, is due to meet Vector today.
The Business Herald was told the company was "looking for a green light to get cracking with the IPO".
One investment banker said: "My pick is that the IPO will get the green light - but I would be staggered if it was unanimous."
The publicly elected trust has been looking at alternatives to a share float, despite the company's explicit advice that a float is the only commercially sensible option.
One proposal, from Australia's DUET - a listed company managed by Macquarie Bank and AMP Capital - is for the trust to retain 100 per cent ownership of the Auckland electricity network but reduce its ownership of other assets.
Vector's management and board are committed to selling 24.9 per cent of the company in a float after spending $880 million last year on a 66 per cent stake in gas transmission and distribution company NGC.
Only two of the trust's five members - chairman Warren Kyd and Karen Sherry - supported Vector's plans to buy the NGC stake and then float.
One trustee, John Collinge, was blocked from voting because of a conflict of interest and Kyd's casting vote approved the company's plans.
Vector has said that $354 million of PIPES - "pre-IPO equity securities" - from investment bank ABN Amro that helped fund the NGC share purchase must be repaid "from the proceeds of an IPO".
If the money is not repaid by a December or January deadline, the securities convert into ordinary shares and ABN Amro - Vector's financial adviser - will own a chunk of the company, which it would presumably onsell.
The Business Herald was told ABN Amro would get the shares at a significant discount to a market value calculated by looking at similar listed companies.
Vector also faces millions of dollars in penalties via two "step-up" fees to ABN Amro if the PIPES are not repaid quickly enough.
The trust's regular monthly meeting is today and financial market sources say the trust may decide whether to appoint an investment adviser to look at float alternatives.
Kyd and trust executive officer Gary Sturgess refused to comment.
Power play
* Owned by trust representing 290,000 power users.
* Delivers electricity and gas in the Auckland and Wellington regions.
* Has assets of $4.76 billion and debt of $3.1 billion
It definitely on*
*subject to the usual goings on with the AECT. :)Quote:
quote:
VCT
13/04/2005
GENERAL
REL: 1750 HRS Vector Limited
GENERAL: VCT: AECT AND VECTOR CONFIRM IPO
The Auckland Energy Consumer Trust (AECT) and Vector Limited are pleased to
confirm that the company will be proceeding with an Initial Public Offering
later this year.
It is expected that the company will list in late August/early September and
will release a prospectus in June.
The IPO will provide AECT beneficiaries with an opportunity to share in the
offer and to also further benefit from the future growth and success of
Vector.
It is also likely that the IPO will contain an offer to minority NGC
shareholders.
AECT chairman Mr Warren Kydd says the Trust is very pleased to be able to
finally end the long-running speculation on Vector's future.
Vector Chairman Michael Stiassny says the company is excited about its future
and is looking forward to listing later in the year.
ends
End CA:00113998 For:VCT Type:GENERAL Time:2005-04-13:17:50:44
From a bondholder - :D:D:D
NGC up 11c today, and the announcement was made at 5.50pm.
Of course just a coincidence!
SSB
And the bond yield was down 0.35% - of course it's all a coincidence. ;)Quote:
quote:Originally posted by Sideshow Bob
NGC up 11c today, and the announcement was made at 5.50pm.
Of course just a coincidence!
AND my latest electricity bill was up 7% [:0]
Co-incidence? maybe.
"It must be Thursday, I could never get the hang of Thursdays"
Vector approves share float
14.04.05
By LIAM DANN
Vector's owners - the Auckland Energy Consumers Trust - have overcome internal differences to approve a sharemarket listing for the giant energy network company.
Vector will list in late August or early September. The initial public offering is expected to raise between $550 million and $650 million - making it the biggest float since Contact Energy in 1999.
Last year Vector flagged the possibility that it might sell as much as 25 per cent of its stock to help fund its $880 million purchase of a controlling stake in gas distributor NGC.
Vector has said that a $354 million loan from investment bank ABN Amro that helped fund the NGC purchase must be repaid "from the proceeds of an IPO". But despite the enthusiasm of the Vector board and management team, only two of the publicly elected trust's five members - chairman Warren Kyd and Karen Sherry - initially backed the idea.
One trustee, John Collinge, was blocked from voting because of a conflict of interest and Kyd's casting vote approved the company's plans.
Yesterday's decision follows weeks of market speculation that the trust was getting cold feet and considering alternatives to the float.
One suggestion was for the trust to retain 100 per cent ownership of the Auckland electricity network but reduce its ownership of other assets.
Last night Kyd said the trust was pleased to be able to "finally end the long-running speculation on Vector's future".
A prospectus will be published in June and Auckland power users - the beneficiaries of the trust - will be given the opportunity to take part in the initial public offering.
It was likely that the IPO would also have an offer to minority NGC shareholders, the company said
wow..... do i note supply and demand here?
supply = auckland power uses only and ngc maybe :D
rest of the country = wait for the ipo :D
do i note some keen open gains for vector.
*old man is sure buying alot when this comes out... and gonna use both house and business's accounts to accumulate in them?
over sub, for this maybe...
Fears of fight for scraps at Vector float
15 April 2005
By MARTA STEEMAN
Institutional investors fear they could be left fighting for the scraps of Vector's $700 million float because a big chunk of the shares may be spoken for when Vector floats in September.
However, the interest of institutional investors may be moderated, analysts say, because Vector's owner, the Auckland Energy Consumers Trust, is seen as dysfunctional and unpredictable.
Up to $400 million Vector shares may be swallowed up by Vector bondholders and 15,000 minority shareholders in NGC Holdings who may be offered an entitlement to buy shares in Vector as part of a takeover offer.
The takeover offer for NGC is expected about the time Vector releases its prospectus later in June for the offer of shares in 25 per cent of the Auckland-based electricity and gas company.
Alliance Capital Management analyst John Norling said he could not recall any company floating and conducting a takeover offer at the same time.
Vector would have to act soon to make an NGC takeover, he said. It might offer NGC shareholders cash and an entitlement to buy Vector shares.
Vector has said "it is likely that the IPO (initial public offering) will contain an offer to minority NGC shareholders" but is not giving any more detail.
J B Were analyst Peter Sigley said existing entitlements to Vector shares by bondholders, and the offering of shares to trust beneficiaries and NGC shareholders, made it likely that a limited number would be available to institutions and other investors.
"It's going to be tight, that's for sure," Mr Sigley said.
Mr Norling said: "The institutions and people outside of Auckland will be left fighting for the scraps."
Vector has also said it will be offering shares to the income beneficiaries of the trust - there are about 260,000 - but it has not spelt out if it is reserving a quantity for them.
Some punters are buying NGC shares in expectation of a takeover offer by Vector. On Wednesday one buyer snapped up 5.5 million. Vector bondholders have entitlement to buy about $153 million worth of Vector shares. They are entitled to buy 50 cents worth of Vector shares for every $1 of bonds they hold at a 5 per cent discount to the issue price.
If Vector applied the same 50c-for-$1 arrangement to NGC shareholders they would be entitled to buy $240 million of Vector shares at current NGC share prices.
Vector chairman Michael Stiassny would not comment on float details. Regarding comments about the scarcity of shares for institutional investors, he said the only clear quantifiable entitlement to shares was that of bondholders.
The float would "evolve fairly quickly. It's a fairly tight timetable", he said.
Mr Norling predicted "in the fullness of time" the trust's shareholding would be diluted to 50.1 per cent because Vector would need to issue more new shares to fund further acquisitions.
Well... the bonds have been good and given that they are the only guaranteed way into the float I am feeling happy.
Are bond holders who are not NZ residents entitled to buy shares in the IPO?
Overseas residents often can't buy shares in IPOs so that I why I haven't bought any bonds.
The entitlement is with the bond holder regardless of place of residenceQuote:
quote:Originally posted by rmbbrave
Are bond holders who are not NZ residents entitled to buy shares in the IPO?
Overseas residents often can't buy shares in IPOs so that I why I haven't bought any bonds.
Brian Gaynor: Why the Vector float will be a winner
16.04.05
The long-awaited announcement that Vector will list on the NZX has been greeted with great enthusiasm.
This is understandable because the last three IPOs (initial public offerings) of former publicly owned companies - Contact Energy, Auckland International Airport and Capital Properties - have performed particularly well.
There is a now a widespread view among New Zealand investors that they will get a better deal from New Zealand politicians than offshore private equity funds and other vendors.
When one compares the performance of Contact Energy, Auckland International Airport and Capital Properties with Feltex, Vertex and Frucor this is an astute perception.
Details of the Vector float are sketchy but it will raise between $600 million and $1 billion for a 25 per cent stake. As the accompanying table shows this would place it between Contact Energy and Westpac New Zealand, the countrys largest IPOs since 1999.
The most important point about IPOs is the ability of the issuer to achieve or exceed its profit forecasts. In this regard the recent issues by former publicly owned organisations have been successful.
Contact Energy, which had an IPO at $3.10 a share in 1999, forecast net earnings of $65.5 million for the September 1999 year and achieved $155.4 million (climatic conditions were particularly favourable for its generating activities).
It predicted $78.4 million for the September 2000 year and achieved $97 million (all forecasts in the table are for the last forecast period contained in the prospectus).
The beauty about big floats, particularly Contact Energy and Auckland International Airport, is they are extensively covered by sharebroker analysts. This means that the forecasts are carefully scrutinised and the information flow to prospective investors is extensive and independent.
Investors, particularly individual investors, are far less likely to make major mistakes when all the major broking houses have committed resources to assess an IPO.
Auckland International Airport was another former publicly owned organisation that exceeded its profit forecasts. The company predicted net earnings of $40.9 million for the June 1998 year and achieved $41.1 million then predicted a drop to $35 million for 1999 and reported $42.4 million.
The airport has been one of the market stars as its shares were issued at $1.80 and it has had a capital repayment in 2002 (seven in every 25 shares were cancelled for the payment of $1.80 per cancelled share) and a recent four-for-one share split.
Another advantage of the partial sell down of former publicly owned companies is that they perform much better under the listing model.
Air New Zealand and Tranz Rail are obvious exceptions to this rule but 100 per cent of these entities were sold to private-sector interests who subsequently on-sold shares to investors.
The Crown has also underpriced assets when selling, particularly Contact Energy and Auckland Airport.
Capital Properties exceeded its profit forecast but this was somewhat of an illusion. The company forecast net earnings of $11.3 million for the March 2000 year and achieved $13.1 million.
But the prospectus forecast had no provision for property revaluations. In the 2000 year property values were written down by $19.7 million so the bottom line result was a loss of $6.6 million compared with the pre-revaluation profit of $13.1 million.
AMP NZ Office Trust fell well short of its prospectus forecast, which included a revaluation prediction. The trust forecast a net operating surplus of $32.5 million for the June 1999 year, and achieved $36.1 million, but it had a revaluation loss of $18.9 million compared with a forecast gain of $13.3 million.
AMP NZ Office Trust has never recovered from its poor performance in the 1999 year.
Pumpkin Patch is a completely different story as net earnings are expected to be well ahead of forecast and its share price has more than doubled from
Thanks very much.Quote:
quote:Originally posted by wsheridan
The entitlement is with the bond holder regardless of place of residenceQuote:
quote:Originally posted by rmbbrave
Are bond holders who are not NZ residents entitled to buy shares in the IPO?
Overseas residents often can't buy shares in IPOs so that I why I haven't bought any bonds.
Do you happen to know how many bonds an investor will need in order to buy 1 share?
I think it's much too early for this, rmbbrave. Such details probably haven't been decided yet, much less announced.
In the capital bond offer in Oct '02, the organising broker said: "Capital Bonds provide holders with an entitlement to an allocation of Ordinary Shares in any future IPO by Vector."
I don't think there's been anything definite said since then. Patience.
A bond-holder is entitled to buy $.50 of Vector shares for every $1.00 bonds holding. Effectively, if you hold 10 000 bonds one is entitled to buy 5000 shares. That's guaranteed.
Thanks Ananda,Quote:
quote:Originally posted by ananda77
A bond-holder is entitled to buy $.50 of Vector shares for every $1.00 bonds holding. Effectively, if you hold 10 000 bonds one is entitled to buy 5000 shares. That's guaranteed.
Could you please tell us where this was announced.
Ananda77
I am aware that bond holder is entitle to 50cents worth of Vector share per bond in the IPO. I didn't know the IPO share price has been announced. Would be grateful if you could confirm.
rmbbrave:
From the September 2005 prospectus:
[u]Investors in the capital bonds will also receive an entitlement to an allocation of ordinary shares in the event of a public offering by Vector and quotation on the New Zealand Stock Exchange.</u>
Reference of ...a right to buy...in an interview with the CEO:
NZ Herald 12-10-2004 by Chris Daniels
http://www.nzherald.co.nz/index.cfm?ObjectID=3599600
Vector bondholders are also high up the queue for an IPO, with every $1000 of bonds giving the right to buy $500 worth of shares... Stiassny also hinted...
Although this was not an official announcement as such, I think it's as close as we can get at this stage.
Thanks very much.
mmm yes i also read those 2 artilces over the weekend, vector is def bullish :D
i wonder how much we can get our hands on them mmmmmmmm :D
*not enough capital!!! *
Buy some bonds. Based on yield, bonds are worth about $1.11 at present. Next payment has an ex date of 1st of June, for half yearly payment. After IPO coupon will drop back to 8.5%, as there is a 1.25% premium on at present, which is since issue because the IPO hasn't yet come around.
Believe bondholders get 5% discount on offer price.
Otherwise depends on where you are living, as looks like trust benefactors of the AECT are likely to be able to participate. Or otherwise buy some NGC shares (unchanged today, at one stage down 6c).
Yes, indeed - not enough capital!!
SSB
Overseas residnts may not be able to participate in the IPO
I asked the woman I buy bonds from the following question:
Sometimes non-NZ residents are not able to buy shares in IPOs. Do you know if overseas residents will be able to buy Vector shares in the IPO if they are Vector bonds holders?
Here was her reply...
I haven't forgotten your query. Vector investor relations did not have an answer to your query. But as it was very valid, and we foresee this question being asked frequently as we approach the IPO, they have gone back to their legal team for clarification.
Given the bonds are already held by some people overseas I believe it impossible to stop participation in the ordinary shares ..... can you imagine the signal this gives to overseas investors in our market ... even so.... it will be very easy and cheap to put the bonds in a local shelf companyQuote:
quote:Originally posted by rmbbrave
Overseas residnts may not be able to participate in the IPO
I asked the woman I buy bonds from the following question:
Sometimes non-NZ residents are not able to buy shares in IPOs. Do you know if overseas residents will be able to buy Vector shares in the IPO if they are Vector bonds holders?
Here was her reply...
I haven't forgotten your query. Vector investor relations did not have an answer to your query. But as it was very valid, and we foresee this question being asked frequently as we approach the IPO, they have gone back to their legal team for clarification.
My guess is that non residents will not be able to participate in the IPO as the offer document will not comply with overseas securities laws and there is no way Vector will want to file with ASCI of SEc to get compliance given the expnese and likley limited interest. However you can buy secondary or you can get some local to warehouse them for you. Suggest you use your broker's nominee account.
from stuff.co.nz
Quote:
quote:
Vector's float a broking bonanza
10 May 2005
initial jostling is over for the spoils of the share float of Auckland energy giant Vector - New Zealand's biggest initial public offering since Contact Energy in 1999.
The booty for sharebroking firms is likely to be 2 to 2.5 per cent of the $550 to $650 million expected to be raised by selling 24.9 per cent of Vector - $11 million to $16.25 million.
Two firms look set to get the biggest shares.
It is understood that Goldman Sachs JBWere will take a leading role, as adviser to Auckland energy giant Vector and its owner, the Auckland Energy Consumers Trust.
That will surprise some, as Goldman Sachs was the adviser to gas company NGC when majority shareholder Australian Gas Light put its 66 per cent stake in NGC on the block last year.
That was the stake bought by Vector for $880 million.
It was also understood ABN Amro, the investment bank that advised Vector and part-funded the buy, would be the lead manager for the float.
Neither appointment is yet formal - but insiders suggest done deals.
A source said pitches for at least two co-manager roles were likely soon.
A prospectus is to be registered in late June and the company may list in August.
Under the terms of ABN Amro's financing, Vector would face a penalty fee - believed to be $8.8 million - if it failed to float and then repay ABN Amro by mid-October.
The share offer is expected to be in stages to three key groups: the Auckland power users who are the beneficiaries of the consumers' trust; Vector bondholders; and minority shareholders in NGC.
NGC shareholders will be offered Vector shares for their own as part of Vector's efforts to secure full ownership of NGC.
"There is unlikely to be a public pool," a source said.
IPO documents start to roll [:p]
Quote:
quote:
VCT
19/05/2005
GENERAL
REL: 1522 HRS Vector Limited
GENERAL: VCT: Pre-registration of interest in Vector share offer
Auckland Energy Consumer Trust (AECT) Beneficiaries* are being given the
opportunity to pre-register their interest in buying Vector shares.
Vector is considering making an offer of shares to the public of up to 24.9%
of the company.
Over the next week, AECT beneficiaries will receive a letter and
pre-registration form which gives them the opportunity to indicate their
preliminary interest in buying Vector shares from a priority pool that will
be set aside for them.
The minimum investment in Vector shares from the AECT beneficiary priority
pool will be $500.
To qualify to indicate their preliminary interest in buying Vector shares
from the AECT beneficiary priority pool, potential investors need to be an
AECT beneficiary as at 1 May 2005 (see additional beneficiary definition in
the 'Notes' section below).
Vector reserves the right not to proceed with the sale of shares, and also
reserves the right to accept or reject any application for shares for any
reason, and may in its absolute discretion scale excess applications on
whatever basis it selects. If the total applications from AECT beneficiaries
exceed the total pool of shares set aside for this purpose, then Vector will
give priority to applicants who have registered their interest, and may
reject applications from those who have not.
Those AECT beneficiaries who complete and return the pre-registration form
will be sent an Investment Statement (including application form) in late
June. They will also be entitled to preferential treatment within the AECT
beneficiary pool.
By pre-registering their interest, AECT beneficiaries will be under no
obligation or commitment of any kind to buy shares, and are not required to
include any money with the pre-registration form. No money is currently
being sought and no applications for shares will be accepted or money
received unless the subscriber has received an Investment Statement.
AECT beneficiaries with one or more properties or electricity accounts will
be entitled to register their interest in respect to each individual account
held if they so choose.
Pre-registration forms for the AECT beneficiary priority pool must be
received by Computershare on behalf of Vector no later than 5:00pm on Friday
10 June 2005.
ends
Notes
* AECT beneficiaries are defined as the named bill payer of an electricity
account on the Vector Electricity network within Auckland City, Manukau City
and parts of the Papakura District
End CA:00115564 For:VCT Type:GENERAL Time:2005-05-19:15:22:58
This one for bondholders.
Note the frequent references to NZ registered addresses (sorry rmbbrave, ENIGMA and all overseas investors) [V]
[quote]quote:
VCT
19/05/2005
GENERAL
REL: 1600 HRS Vector Limited
GENERAL: VCT: Vector Capital Bondholder Record Date and Pre-registration
On 13 April 2005, Vector Limited ("Vector" or the "Company") confirmed its
intention to proceed with an Initial Public Offering ("IPO") later this year.
The Capital Bonds that the Company has on issue and that are listed on NZDX
have a priority right to subscribe in the IPO for $500 worth of shares for
every whole $1,000 of Principal Amount of Capital Bonds held by the
Bondholder on the Bondholder Identification Date at an issue price of 97.5%
of the issue price paid by other subscribers in the IPO.
To enable the Company to accurately determine the entitlements for Capital
Bondholders, we announce that the following process is being adopted:
1 June 2005: Bondholder Identification Date for the Capital Bondholder
register
Bondholders on the register who have a New Zealand registered address
as at close of business on this date will be sent a Pre-registration Form.
Bondholders who do not have a New Zealand registered address will not be
entitled to pre-register or to the priority subscription right.
2 June 2005: Ex date
The Capital Bonds will trade on an "ex entitlement to the IPO" basis from
this date. The "entitlement to the IPO" will be personal to the holder of
the Capital Bonds with a New Zealand registered address on the Bondholder
Identification Date. It is not transferable to any other party.
3 June 2005: Pre-registration letter and form mailed to Capital
Bondholders
Only Capital Bondholders as at the Bondholder Identification Date who
have a New Zealand registered address are eligible to pre-register their
interest.
22 June 2005: Last date for pre-registration of interest
(the "Record Date")
Capital Bondholders with a New Zealand registered address who were "entitled"
on the Bondholder Identification Date and who wish to be eligible to
subscribe for shares in Vector in the IPO must have submitted their
"Pre-registration of Interest" by this date.
28 June 2005: Entitlement letters mailed to Capital Bondholders
Entitlement letters will be mailed to all eligible Capital
Bondholders who pre-registered their interest prior to the Record Date.
All such eligible Capital Bondholders who complete the "pre-registration"
process will be sent an Investment Statement and Application Form (stating
each Capital Bondholder's entitlement in the IPO) after registration of the
Prospectus. Eligible Bondholders will then be required to submit an
application for shares in the IPO under the terms of issue as set down in the
Investment Statement. The final timetable for the IPO will be advised at a
later date.
Note that Capital Bondholders who do not pre-register by signing and sending
in the Pre-Registration Form will lose any priority right to subscribe for
Vector shares in the IPO. All Capital Bondholders on the register as at the
Bondholder Identification Date who have a New Zealand registered address will
be sent a Pre-Registration Form and instructions as to what to do.
Pre-registration to participate in the IPO will be at no cost to a Capital
Bondholder. No money will be sought and no applications for Vector shares
will be accepted or money received prior to a prospectus for the IPO being
registered in accordance with the Securities Act 1978, the IPO period having
opened and the Capital Bondholder receiving an Investment Statement.
Vector expects to release a prospectus in late June and looks forward to full
participation by Bondholders both in the pre-registration process and the
subsequent IPO.
Yours sincerely
Michael Stiassny
Chairman
End CA:00115566 For:VCT Type:GENERAL
Thank you Paper Tiger this effects me to
I will enjoy the 2.5% discount as well.[:p]
Paper Tiger and others I just hope computershare does not stuff up the address change for just Vector thank you for the official notification. At least this way we know not like MGP where the paperwork just did not arrive.
yeah i just hope they wont stuff it up
whoeva has theirs could u let us know?
im looking forward to getting mine in the mail :D
hey guys
i am thinking to buy the vector bone for getting their share on IPO
it is VCT010 right
and what is the price for the bond ??
it shows buy yield is 4.4%, so how much does it cost per bond? 4.4cents ?
and how much interest it pay per bond? anyone can help me to know more about vector bond plz. thanks
VCT010 Bonds are currently trading for $1.12185. The next interest payment has a record date of the 1st of June (half-year).
$1,000 worth of bonds get you $500 worth of shares. Get a 2.5% discount on shares as a bondholder - yippee!
Coupon rate is 9.75%, but after the IPO this will fall to 8.5%, as there was a bonus 1.25% interest while there wasn't an IPO.
Recently bought a few more bonds. Unsure if it will be worth it, but at least gives a piece of the action if live outside Auckland.
SSB
I knew this was going to happen. The way the masturbators at Vector relations refused to give my bond broker a straight answer convinced me they were getting ready to buttfu*k us.Quote:
quote:Originally posted by Paper Tiger
This one for bondholders.
Note the frequent references to NZ registered addresses (sorry rmbbrave, ENIGMA and all overseas investors)
But I have taken steps to ensure that I will be able to buy in the IPO.
That deceitful liar Stainssy will have to get out of bed prety early in the morning to screw yours truly.
The yield of 4.4% is like a companies divided.Quote:
quote:Originally posted by PLK
hey guys
i am thinking to buy the vector bone for getting their share on IPO
it is VCT010 right
and what is the price for the bond ??
it shows buy yield is 4.4%, so how much does it cost per bond? 4.4cents ?
and how much interest it pay per bond? anyone can help me to know more about vector bond plz. thanks
The price of the bond is given per 100 for example $102 per 100.
When the bonds are issued they cost $1 each and the yield was 9.75%. Vector shares are in demand now so you will have to part with $108.12 for 100.
See:
http://www.nzx.com/market/security_d...ty?code=VCT010
Hi rmbbrave,
Presume also have to 'pay' for the accured interest from the last record date, as recent trades have been around $1.12.
I just divided daily turnover by bonds traded? Got $1.12, and that is in line with what my last lot cost me.
http://www.nzx.com/market/price_by_s...ies_a-z?list=V
Good work in making sure taken necessary steps to get involved in the IPO - I'd be p*ssed off too if I was overseas.
SSB
posted by sideshow bob:
Yippee indeed. I'm a $10k bondholder from way back and also a Vector customer, though I imagine the allocation to customers will be minute. Saving up my pennies in the meantime.Quote:
quote: $1,000 worth of bonds get you $500 worth of shares. Get a 2.5% discount on shares as a bondholder - yippee!
Yes, you have to buy the accured interest too. But you get that interest so it cancels itself out.Quote:
quote:Originally posted by Sideshow Bob
Hi rmbbrave,
Presume also have to 'pay' for the accured interest from the last record date, as recent trades have been around $1.12.
I just divided daily turnover by bonds traded? Got $1.12, and that is in line with what my last lot cost me.
http://www.nzx.com/market/price_by_s...ies_a-z?list=V
Good work in making sure taken necessary steps to get involved in the IPO - I'd be p*ssed off too if I was overseas.
SSB
My father has got his forms.Quote:
quote:Originally posted by Dazza
yeah i just hope they wont stuff it up
whoeva has theirs could u let us know?
im looking forward to getting mine in the mail :D
The minimum investment is $500 but there seems to be no maximum.
My Dad (the big spender) is keen to buy a $1000 worth so I probably get him to write $41,000 in the space on the form.
yeah i just got mine too :DQuote:
quote:Originally posted by rmbbrave
My father has got his forms.Quote:
quote:Originally posted by Dazza
yeah i just hope they wont stuff it up
whoeva has theirs could u let us know?
im looking forward to getting mine in the mail :D
The minimum investment is $500 but there seems to be no maximum.
My Dad (the big spender) is keen to buy a $1000 worth so I probably get him to write $41,000 in the space on the form.
but i dun get what ur saying?
so ur dad is going to buy $1000, and u are going to buy $40000?
or he is going to buy $1000, but because of the tight script, u are inflating it by 40x?
we just got ours, gonna get another one from the shop, gonna try and get $10k worth, so we gonna put $40k initially
when the real one comes out, gonna put 10k on each and see where we go from there..
any predictions?
im tinking gonna rocket?
1. instos cant buy? am i correct?
2. 24.9% only gonna be IPO'ed
3. akl ppl only :D
4. rest wanna/gonna buy it to :D