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New Zealand Securities Commission |
Last Updated: 17 November 2014
12 April 2011
Recent offers by limited partnerships associated with Mr Bernard Whimp to
purchase shares
Shareholders in several listed companies have complained to the Securities
Commission about offers made in March 2011 from limited
partnerships associated
with Mr Bernard Whimp. Shareholders are concerned that Mr Whimp’s offers
may be misleading. So are
we.
Which offers?
The offers were made around 15-18 March 2011 by:
• Carrington Securities LP – to buy shares in TrustPower Limited
• NZ Investment Securities LP – to buy shares in Vector Limited
• Chase Securities LP – to buy shares in Guinness Peat Group plc
• Carlyle Securities LP – to buy shares in Contact Energy Limited
• Energy Securities LP – to buy shares in DNZ Property Fund Limited
• Fairfield Securities LP – to buy shares in Fletcher
Building Limited.
Mr Whimp is the general partner of all these limited partnerships.
What has the Securities Commission done about the offers?
We have obtained interim orders that stop the transfer of shares to the
buyers until the Court decides whether the offers are misleading.
What happens next?
The Court will decide on 9 May 2011 if the offers are
misleading.
continued over
I accepted an offer – what should I do now?
You don’t have to do anything at the moment.
You can go to our website at www.seccom.govt.nz for more information,
and watch the media for the outcome of the hearing.
If the Court decides the offers were misleading, the Securities Commission
will ask it to cancel the share sales and for any shares
already sold to be
returned. If the Court decides the offers weren’t misleading, the accepted
offers will go through and shares
will be transferred.
You may have had a notice from us or be about to get one. This explains that
you may go ahead and sell your shares regardless of what
the Court decides about
the offers.
DO NOT SIGN and return the notice UNLESS you do want to go
ahead and sell your shares to the limited partnership that offered to buy
them.
What shall I do if the Court decides the offers weren’t misleading?
We recommend you get legal advice as soon as possible. The Court may decide
the offers were not misleading, and/or the Commission
might be unable to cancel
the sale of shares and have them returned to you.
We can’t give you any legal advice. A lawyer will be able to tell you
what your other options are.
How did the partnerships get hold of information about me?
Companies are legally required to provide a copy of their share registers to
anyone who asks for it. This includes the names and addresses
of their
shareholders.
Are these offers illegal?
It’s not illegal to offer to buy someone’s shares or to offer to
buy them at below their current market value. But it
is against the law to
mislead or deceive someone into accepting an offer.
At first sight, these offers seem to be for above the shares’ current
market value, but we believe they are misleading. You
won’t be fully paid
for 10 years so, in today’s value, the offer is worth much less than first
appears.
Not only is the offer worth less than it appears, but it’s worth less
than you would get if you sold your shares now at the
current price through a
sharebroker.
You will also lose rights to any dividends over those 10 years, and you will
have to trust the creditworthiness of the limited partnership
to meet your
ongoing payments.
Where can I get more information?
Go to www.seccom.govt.nz. Or you can
call the registrar of the company you hold shares in – Computershare
Investor Services Limited – on 0800
888 726.
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URL: http://www.nzlii.org/nz/other/NZSecCom/2011/6.html