Share
- Release Date: 18/12/13 11:44
- Summary: WAV/RULE: AKC060: AKC- Waiver from NZDX Listing Rule 5.2.3
- Price Sensitive: No
- Download Document 3.59KB
AKC
18/12/2013 09:44
WAV/RULE
REL: 0944 HRS Auckland Council
WAV/RULE: AKC060: AKC- Waiver from NZDX Listing Rule 5.2.3
NZX Regulation Decision
Auckland Council ("AKC")
Application for extension of waiver from NZDX Listing Rule 5.2.3
17 December 2013
?
Decision
1. Subject to the conditions in paragraph 2 below, and on the basis that the
information provided by Auckland Council ("AKC") is complete and accurate in
all material respects, NZX Regulation ("NZXR") grants AKC a waiver from NZDX
Listing Rule 5.2.3 ("Rule") in respect of the AKC060 Bonds for a period of
12-months from 18 December 2013, to allow AKC to have fewer than 500
Bondholders who are Members of the Public.
2. The waiver contained in paragraph 1 is granted on the following
conditions:
(a) AKC clearly and prominently discloses this waiver, its conditions, and
its implications in its half-year and annual reports; and
(b) AKC notifies NZXR if there are any material changes to the spread of the
AKC060 Bonds.
3. The information on which this decision is based is set out in Appendix One
to this decision. This decision will not apply if that information is not, or
ceases to be, full and accurate in all material respects.
4. Rule 5.2.3 is set out in Appendix Two to this decision.
Reasons
5. In coming to the decision to grant the waiver set out in paragraph 1
above, NZXR has considered that:
(a) debt securities are generally not subject to the same degree of trading
activity as equity securities;
(b) AKC has advised that it expects the spread of AKC060 Bonds will continue
to increase;
(c) the condition, contained in paragraph 2(a) above, will ensure that both
existing AKC060 Bond holders and those wishing to trade in AKC060 Bonds are
aware AKC060 Bonds may not satisfy the spread requirements of Rule 5.2.3; and
(d) NZXR has granted similar 12-month waivers in the past. The 12-month
waiver gives NZXR the opportunity to reconsider the spread of the AKC060
Bonds in 12 months' time if AKC considers a waiver is still required.
?
Appendix One
1. AKC is a Listed Issuer with bonds Quoted on the NZX Debt Market ("NZDX").
2. AKC Quoted $125,000,000 fixed rate bonds maturing on 18 December 2018 on
the NZDX on 18 December 2012 ("AKC060 Bonds"). AKC060 Bonds are Quoted under
the ticker code AKC060.
3. On 5 October 2013, NZXR granted AKC a waiver from the requirements of Rule
5.2.3 in respect of the AKC060 Bonds for 12-months from the date of their
Quotation.
4. As at 2 December 2013, there were 60 registered holders of the AKC060
Bonds. This is an increase of 16 registered holders from 44 holders on the
register at the time of Quotation.
5. Some of the registered holders of AKC060 Bonds are nominees and
custodians. As at 30 June 2013, there were approximately 306 underlying
holders of the AKC060 Bonds.
6. AKC expects that the spread of the AKC060 Bonds will continue to increase
(as has been the case since the AKC060 Bonds were Quoted).
Auckland Council - Application for extension of waiver from NZDX Listing Rule
5.2.3
Appendix Two
Rule 5.2.3 Quotation of Securities
A Class of Securities will generally not be considered for Quotation on the
NZSX or NZDX unless those Securities are held by at least 500 Members of the
Public holding at least 25% of the number of Securities of that Class issued,
with each Member of the Public holding at least a Minimum Holding, and those
requirements are maintained, or NZX is otherwise satisfied that the Issuer
will maintain a spread of Security holders which is sufficient to ensure that
there is a sufficiently liquid market in the Class of Securities.
End CA:00245341 For:AKC Type:WAV/RULE Time:2013-12-18 09:44:58
