Hastings Diversified Utilities has deferred partial payment of a multimillion-dollar fee.
TAKEOVER target Hastings Diversified Utilities has deferred partial payment of a multimillion-dollar performance fee to its manager, as it awaits the outcome of the takeover offer lodged by pipeline owner and manager APA Group.
Thanks to its strong performance in the six months to December 31, Hastings Diversified is due to pay $54.1 million to its manager, Westpac unit Hastings Funds Management.
It will pay $30.7 million in cash, leaving payment of the balance, which is the portion of the fee it calculates is due since APA launched its takeover offer on December 14, to be decided later.
Its decision on whether to pay the balance will depend on whether the uptick in the unit price since the launch of the bid is sustained and whether control of the company changes hands.
Units outperformed the relative benchmark in the December half, it said, with its market value rising to $1.09 billion by the end of 2011, up from $876 million a year earlier.
APA shares traded down 4? to $4.44 yesterday, extending a decline from the December high of $4.70. Hastings shares slipped 2? to $1.98.