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- Release Date: 20/03/13 15:22
- Summary: GENERAL: VCT: A "low ball" from across the Tasman
- Price Sensitive: No
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VCT
20/03/2013 13:22
GENERAL
REL: 1322 HRS Vector Limited
GENERAL: VCT: A "low ball" from across the Tasman
An Australian company is targeting Vector shareholders, making unsolicited or
"low ball" offers to purchase shares at considerably less than the market
value.
Washington Securities Pty Ltd is offering Vector shareholders $2.00 per
share, which is nearly 30% below today's share price of $2.82 per share.
Vector Chairman Michael Stiassny is warning shareholders of the approach from
the Australian company and urges them to seek independent advice from their
financial advisor.
He also recommends shareholders check the latest share price on the NZX
website at www.nzx.com/companies/VCT
Mr Stiassny said hundreds of Vector shareholders have been caught out in "low
ball" share offers over the past 18 months, many of them "mum and dad"
investors. Those investors have potentially lost hundreds of thousands of
dollars in value collectively in the deals.
Under the new Securities Markets (Unsolicited Offers) Regulations 2012,
unsolicited share offers must be made within a concise disclosure document
that includes prescribed information. However, Mr Stiassny said while this
offer wasn't illegal, it was unethical.
"We believe our shareholders should be aware of the dangers that exist and
the consequences of accepting offers significantly below the market price,"
he said.
Under the new regulations, shareholders have the right to cancel any
acceptance of the offer up to 10 working days after the date of the
acceptance.
ENDS
End CA:00234354 For:VCT Type:GENERAL Time:2013-03-20 13:22:07
