A media article appearing today (Monday 29th) in the Christchurch Press newspaper
NZOG gets nod to lift stake
By MARTA STEEMAN - The Press | Monday, 29 June 2009
NZO 1.560 -0.030 (-1.89%) New Zealand Oil & Gas Limited Ordinary Shares
Pike River Coal shareholders have given the nod to a cornerstone shareholder being allowed to lift its stake above 20 per cent by exercising share options.
The company sought approval to issue shareholder New Zealand Oil and Gas with 17.26 million April 2011 shares options at $1.25 each.
Pike River is developing an underground coal mine in the Paparoa Range 46 kilometres northeast of Greymouth on the West Coast.
The 2011 share options and another 11 million 2009 shares options (at $1.30) would take its stake to 35 per cent as long as no other shareholders exercised their 2011 and 2009 share options and no bonds were converted to shares.
The Takeovers Code requires a party wanting to increase its stake above 20 per cent to make a takeover bid to shareholders on the same terms to all, unless shareholders approve an increase in the stake without making a takeover bid.
Pike River said the resolution was passed unanimously by a show of hands. Only about 15 shareholders attended the meeting in Wellington.
Proxies for the meeting were received from 847 shareholders. Of those, 43.93 million (93.8 per cent) were in favour of the resolution, 2.34 million were against and 543,269 votes were left to the proxy's discretion. Abstentions from voting numbered 122,992. Pike River chief executive Gordon Ward said NZOG could exercise the 2011 options any time between now and the April 2011 expiry date.
NZOG has the option to buy 11 million shares at $1.30 a share by the end of June but the share price is below the option price so it remains to be seen if it exercises the option.
It received approval from the Takeovers Panel to exercise the 2009 options some time ago but the panel required shareholder approval for the exercise of the 2011 options.
They were part of an underwriting deal between NZOG and Pike River for a recent $41 million rights issue. NZOG holds 29.6 per cent of Pike River.
PRC Price at posting:
93.7¢ Sentiment: Hold Disclosure: Held
