An oldie but a goodie02/44 ASIC achieves further disclosure by...

An oldie but a goodie

02/44 ASIC achieves further disclosure by CityView

Tuesday 12 February 2002


The Australian Securities and Investments Commission (ASIC) today required Perth-based CityView Corporation Limited (CityView) to make additional disclosure to the Australian Stock Exchange (ASX), to correct misleading aspects of the original announcement.

On 24 December 2001 CityView made an announcement to the ASX about its recent acquisition activity in the United Kingdom which ASIC found to be misleading.

CityView was required to clarify that previously disclosed 'turnovers' of potential target companies were in fact forecast sales revenues provided by the targets and were yet to be verified by CityView's due diligence process. This clarification alters the weight investors may decide to place on the financial information in the original announcement.

In its 24 December 2001 announcement, CityView had described a number of potential acquisitions .... It stated that these acquisitions had the potential to bring to CityView approximately AUD $90 million of immediate annualised revenue with a target to deliver in excess of 10 per cent PBIT

‘Companies must ensure they do not risk misleading the market by making announcements too early or by overstating the status of negotiations of potential acquisitions or their financial benefits. Investors must be able to rely upon the information to make an informed decision’, said Richard Cockburn, an ASIC Director of Policy and Markets Regulation.
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So now CVI writes .. we will make a $squillion subject to due dilligence.

http://www.asic.gov.au/asic/asic.nsf/byheadline/02%2F44+ASIC+achieves+further+disclosure+by+Cityview?openDocument