The failure of C&R Entrust trustees to come clean on asset sales has sparked an online petition.
“We asked Entrust for clarity around asset sales and their response was ambiguous – there is definitely something going on they do not wish to talk about” says Richard Leckinger, City Vision for Entrust candidate.
On September 14 the NBR confirmed “an investment bank plan involving a restructuring of Vector’s distribution network … which would then be partly sold to an outside investor. Money raised from the deal would allow a capital return to Vector shareholders and, in turn, a capital payment by Entrust to Auckland Council.”
There are effectively three ways to privatise Vector; sell down Entrust’s shares, sell down Vector’s assets, and/or wind up the trust. To date, Entrust Chair William Cairns has only ruled out the first method.
“Faced with an evasive and misleading response from C&R trustees, we have launched an online petition calling on all of them to front up about their privatisation plans. Any form of privatisation has a direct impact on our dividend”, Mr Leckinger said.
“The smoking gun is Cairn’s refusal to rule out asset sales, coupled with Michael Stiassny’s confirmation that merchant bank UBS has engaged with him as Vector Chair.
“Entrust voters deserve the whole truth about how our assets are being managed, not platitudes.
“We know the trust is deeply divided amid claims of bullying and other High Court action.
“Anyone worried about their dividend is urged to sign the petition, and just as importantly, exercise their vote starting on October 11”, says Mr Leckinger.