Eastern Bay Energy Trust is offering $4.41 a share in a takeover bid for the Whakatane-based Horizon Energy.
The trust already owns 77.29 percent of the company. Its offer follows a failed bid in 2010, which was blocked by the other major shareholder, Marlborough Lines.
This time Marlborourgh Lines has agreed to sell to Eastern Bay providing the takeover offer wins the support of Horizon's consumer stakeholders. It holds a 13.89 percent stake in Horizon.
Eastern Bay Energy chairman Don Lewell is confident the company can win over other investors.
"We've got a lot of support in the neighourhood," he said.
The offer values the company at $110.2 million and is a 6 percent premium to the most recent market closing price of $4.15 a share.