VECTOR IPO Offer

[prius]

AECT Beneficiary Offer:
The Price payable for shares by applicants under the AECT Beneficiary Offer will be lower of $2.38 and the Final Price.
(The issue price is assumed to be $2.38 as it will be the lower of $2.38 and a final price that may be determined through an institutional bidding process).

NGC Take Over Offer:
Vector will offer $3.40 for each NGC share (Cash $0.78 and Issuing Vector shares having an aggregate issue price of 2.62). Shares issued under the NGC takeover offer or compulsory acquisition of NGC shares will have an issue price of the lower of $2.38 and the Final Price.

Guys:
Above is quoted from the Vector Investment Statement. I am an AECT beneficiary however I missed the pre-registration. Anyway I am still going to apply for a substantial amount of Vector share under AECT Beneficiary Offer.

I have got couple of questions which I need answer for.

Can some one suggest what the status is with VECTOR taking over NGC? If this is finalized then is there any reason one would like to buy NGC shares at Market Price ($3.84 on 20/7/2005) with a hope of getting Vector shares. To me it seems absurd to buy NGC at $3.84 when upon takeover the investors at NGC will be left with $0.78 cash and say $2.62 worth of Vector Share. This Vector share needs to appreciate by ($3.84-$0.78)/$2.62= 16.8% to recoup the loss. So the question is: what is the rationale behind this appreciation of NGC share?

[Snow Leopard]

how unusual, a thread that is not on the NZX board but should be.

There is an existing vector thread you should check out as it will at least partially answer your question, maybe.

NGC shares have been trading in the stratosphere because it was a guaranteed way to get Vector shares and some people were willing to pay the ludicrous price, it has been up around $4.

I don't know what you will get through your late IPO registration but best of luck.
It will be interesting to see how this perform over the fullness of time.

[Lawso]

quote:
NGC shares have been trading in the stratosphere because it was a guaranteed way to get Vector shares and some people were willing to pay the ludicrous price, it has been up around $4.

These words may come back to haunt you, PT. Let's wait and see.
PS. I've bought NGC @ 380 and feeling confident.

[Snow Leopard]

I have never been haunted by my words, Lawso. So no worries, heh?
May your confidence remain forever intact.

[geohay]

quote:Originally posted by prius

AECT Beneficiary Offer:
The Price payable for shares by applicants under the AECT Beneficiary Offer will be lower of $2.38 and the Final Price.
(The issue price is assumed to be $2.38 as it will be the lower of $2.38 and a final price that may be determined through an institutional bidding process).

NGC Take Over Offer:
Vector will offer $3.40 for each NGC share (Cash $0.78 and Issuing Vector shares having an aggregate issue price of 2.62). Shares issued under the NGC takeover offer or compulsory acquisition of NGC shares will have an issue price of the lower of $2.38 and the Final Price.

Guys:
Above is quoted from the Vector Investment Statement. I am an AECT beneficiary however I missed the pre-registration. Anyway I am still going to apply for a substantial amount of Vector share under AECT Beneficiary Offer.

I have got couple of questions which I need answer for.

Can some one suggest what the status is with VECTOR taking over NGC? If this is finalized then is there any reason one would like to buy NGC shares at Market Price ($3.84 on 20/7/2005) with a hope of getting Vector shares. To me it seems absurd to buy NGC at $3.84 when upon takeover the investors at NGC will be left with $0.78 cash and say $2.62 worth of Vector Share. This Vector share needs to appreciate by ($3.84-$0.78)/$2.62= 16.8% to recoup the loss. So the question is: what is the rationale behind this appreciation of NGC share?