News Round Up

Monday, April 14th 2003, 8:11AM

This week’s offers
Two new offers are open this week, one the massive Promina Ipo and the other a much smaller capital note offering from Feltex.

Promina says a minimum of 900 million shares will be offered to investors and there is the ability for the firm to allocate another 157 million shares available.

At a maximum retail price of $2.15 each Promina is looking to raise $1.93 billion from retail investors.

At the other end of the scale Feltex is after $50 million (with the option of an extra $10 million in over subscriptions).

It is offering 10.25% annually, with interest paid quarterly. The bonds mature in September 2008.

These bonds also carry a preferential subscription right to shares if Feltex makes an IPO. In the event of an IPO not proceeding by September 30, 2005, the interest rate on the bonds will increase by 1.5%

Challenger’s new boss
Chris Cuffe has taken over the reins at Challenger as acting chief executive officer with Bill Ireland stepping down immediately.

Ireland will be receiving A$1.25 million as a termination payment and will remain on the board as a non-executive director until the merger of Challenger International and CPH Holdings Corp (CPHIC) is completed.

The merger is scheduled for completion on July 1.

Pyramid seller fined
Following the recent Commerce Commission prosecution of pyramid selling scheme Infinity Concierge Limited and its operators, a fifth defendant, David John Mawson, was fined $11,520 including costs in the Christchurch District Court last week for operating or promoting a pyramid selling scheme.

Infinity Concierge and its operators were fined a total of $38,760 including costs last month. Four men pleaded guilty to the charges of promoting the British-based international selling organisation.

In sentencing, Judge Erber described the breaches as serious and said that the chance of earning $182,000, as promoted in the presentations, was remote for 99.9% of members.

A bill currently before Parliament will, if enacted, significantly increase the penalties for operating a pyramid scheme. Under the proposed Fair Trading Amendment Act, operators would face penalties of up to $200,000 (for companies) or $60,000 (for individuals). In addition, the courts could fine people up to the value of any commercial gain resulting from the scheme.

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