Share
CMO
25/09/2012 15:19
S/HOLDER
REL: 1519 HRS The Colonial Motor Company Limited
S/HOLDER: CMO: Unsolicited offer
The board of directors of The Colonial Motor Company Limited has today become
aware that some shareholders have received an offer from Stock & Share
Trading Company Pty Limited to buy their shares at $2.00 each. The current
market price is $3.70.
The board recently declared a dividend of 16 cents per share payable on 26
October to shareholders registered on 12 October 2012 (the record date). The
unsolicited offer expires on 15 October 2012.
The Financial Markets Authority (FMA) has released warnings about Stock &
Share Trading Company Pty Limited and low ball offers in general.
Shareholders are encouraged to take note of the guidance from FMA to seek
independent financial advice and check the current share price before
reaching a decision. The situation is made more complicated by the timing of
the offer around the period when shares may be sold cum- or ex-dividend.
Inexperienced shareholders may not factor the value of the dividend into
their decision making.
The Colonial Motor Company Limited (CMC) was approached in late July with a
request for a copy of its share register. To comply with the law, it
reluctantly provided a copy of the share register on 14 September 2012.
The Company's 2012 annual report is being mailed tomorrow and it will enclose
a letter to all shareholders alerting them to the issue.
End CA:00227715 For:CMO Type:S/HOLDER Time:2012-09-25 15:19:28
