Pulse Utilities New Zealand Limited
Transaction Type: Company meeting (Allotment)
Allottee: Buller Electricity Limited
Independent Adviser(s): Simmons Corporate Finance (Rule 18)
Date of meeting: 18/08/2011
Buller Electricity Limited (Buller) held 8.48% of Pulse’s ordinary shares.
Pulse proposed a capital restructuring to consist of the following steps:
- a portion of Pulse’s convertible notes then on issue would be converted into an interest-free loan and the balance of the convertible notes would be converted into new ordinary shares;
- Buller would provide a two-year guarantee for new credit facilities that Pulse had with Westpac bank. In consideration for this guarantee, Pulse would issue new ordinary shares to Buller; and
- Buller would capitalise some of its existing loans to Pulse and receive new ordinary shares,
(together, the proposed transactions).
It was likely that, as a result of the proposed transactions, Buller would hold or control between 65% and 75% of the shares in Pulse.
On 18 August 2011, the proposed transactions were approved at the annual meeting of shareholders.
