Hawk coy on Cynotech’s future
Allan Hawkins is being coy about the future of minnow finance company Cynotech Holdings after his successful takeover bid last month.
Thursday, April 8th 2010, 1:00AM
by Paul McBeth
The company's chief executive and chairman succeeded in convincing enough investors to swap their stock for securities in a shell company he controls, but is not giving any more away about his intentions for the company than what he indicated in the takeover document. He confirmed the company had completed its sale of its satellite phone services business, though he declined to comment on whether there were any future asset sales on the horizon.
"I've got nothing more to add - we're just going through the steps," he told depositrates.co.nz.
The offer valued Cynotech shares at 13.5 cents, and was launched in December, with Hawkins indicating he would look to retire within two years. The independent adviser's report on the bid recommended shareholders against accepting it, and it was panned by broker McDouall Stuart.
The document signalled Cynotech would sell down its assets to provide for the eventual redemption of the preference shares issued in Hawkins' shell company, though it would continue to recover distressed debts from the Western Bay Finance and National Finance loan books to help achieve this goal.
The takeover went unconditional last month, with holders of 78.4% of the company's shares, 51.4% of its convertible preference shares, and 71.9% of its warrants accepting the offer.
Last week, managing director Brett Tawse resigned from the company's board and was replaced by general manager of Cynotech Finance Group, Wayne Hawkins.
Paul is a staff writer for Good Returns based in Wellington.
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