Dated at Auckland this 13th day of August 2010.
The Common Seal of the Takeovers Panel was affixed in the presence of:
D O Jones,
Statement of reasons
This notice applies to acts or omissions occurring on or after 1 November 2010 and expires on 1 May 2011.
The Takeovers Panel has granted an exemption from rule 6(1) of the Takeovers Code (the Code) to the Auckland Council (established by section 6 of the Local Government (Auckland Council) Act 2009) and all council-controlled organisations that are wholly owned by the Auckland Council in respect of their acquisition of shares in New Zealand Local Government Insurance Corporation Limited (NZLGIC) on or before 1 May 2011.
NZLGIC is a specialist provider of insurance and related services to the local government sector. Its shareholders are local authorities. Eight of those local authorities, which collectively hold 21.2% of the shares in NZLGIC, will be disestablished on 1 November 2010 and replaced by a new Auckland Council. As part of that process, the 8 local authorities’ shareholdings in NZLGIC will vest in the new Auckland Council or in 1 or more of its wholly owned council-controlled organisations. That acquisition will trigger rule 6(1) of the Code.
The Takeovers Panel considers that it is appropriate and consistent with the objectives of the Code to grant the exemptions because—