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South Canterbury Finance warns investors

Wednesday 11th of August 2010

The company is warning investors to take professional advice before considering any offers to buy their securities at heavily discounted prices below those on the NZX trading platform.

South Canterbury Finance chief executive Sandy Maier says it is an unfortunate reality that speculators do try to profit from lowball offers at the expense of existing security holders.

"It is notable that in both Australia and the United Kingdom there are regulations offering investors a degree of protection from these predatory offers. Further, the Ministry of Economic Development published a discussion paper recently seeking views on the protection that should be offered to security holders in similar circumstances in New Zealand."

The company has been approached with requests for access to the registers of holders of one tranche of the company's bonds and its perpetual preference shares. The company considers that these requests may be a preliminary step taken ahead of an offer to investors and has, therefore, informed the Securities Commission. In the meantime, the company will comply with its obligations under the Securities Act 1978 to provide copies of the registers.

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Latest Comments
FMA outlines its latest expectations for advisers
Paul Flood: The danger is that the 'goalposts' (regarding what is acceptable or unacceptable adviser conduct) may be susceptible to change. Our 'Principles based' legal/regulatory environment lends itself to “prevalence-induced concept change” over time, perhaps not so much in the written laws and Code, as in the interpretation of the prescribed principles.
2 days ago Steve Wright
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Just a tip, if you use more than six, six letter words in a sentence you lose most Kiwi's. So avoid client/adviser confusion when writing your post or article if you would like it read and understood. Ironically, my last sentence was not likely read.
2 days ago Backstage
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