Time for a change at the Trust: Vector, Entrust and the investment bank

There are plans to reduce the Entrust share of Vector, cutting or eliminating your dividend and giving the sales revenue to Council say the City Vision team standing for election to Entrust.

City Vision team leader Peter Neilson calls on Mr Cairns the Trust Chair to confirm any contact with investment banks to discuss selling share.

Despite denials from the C& R Trust Chair William Cairns, the business newspaper NBR ran a story in its latest paper with the headlines “Bank confirms Vector approach”.

In the article by Tim Hunter the paper confirmed ‘A proposal to sell part of Vector’s Auckland electricity network to outside investors  is believed to have been developed by an investment bank….Talk of the proposal has emerged amid intense political maneuvering ahead of October elections for the five Trustees who control Entrust – and hence Vector’.

The article goes on to say “With the future of Entrusts dividends to Auckland electricity consumers becoming an issue for the Trust elections, Entrust Chair William Cairns has said…..Let me be clear.  Entrusts shares in Vector are not for sale.  However, a market source said he had seen elements of an investment bank plan involving a restructuring of Vector’s distribution network into a separate subsidiary company, which would then be partly sold to an outside investor.  Such a move would require a shareholder vote, so could proceed only with the support of Entrust but would not involve a sale of Vector shares.”

City Vision Entrust leader Peter Neilson says “City Vision will be forced to organise an online petition to protect the future dividends for the existing beneficiaries unless the Chair of the Trust confirms there is no asset or share sell down.”

The City Vision team standing for the Trust are Glenda Fryer, Richard Leckinger, Simon Mitchell, Peter Neilson and Robert Reid.

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