Move on it is. I hope after some sales the board might do a buyback down the track to take out the extra shares issued. In the meantime onwards and upwards divis to start flowing and hopefully now E-trade and Commsec might finally add CRF to the margin loan section so we can build on our wealth.
Cheers Hotlegs
Centro moves on after legal settlement
May 10, 2012 - 11:14AMRead later
Shopping centre owner Centro Retail Australia says a $200 million settlement in a class action against it allows it to move on and focus on improving value for its securityholders.
Centro Retail on Thursday confirmed it would contribute $85 million to an in-principle settlement payment of $200 million agreed to a day earlier.
The class action was undertaken by law firms Slater and Gordon, and Maurice Blackburn against Centro Group and its auditor PricewaterhouseCoopers more than four years ago.
Investors involved accused Centro of misleading and deceptive conduct by not disclosing in its 2007 financial report that it had at least $3 billion of interest-bearing debt falling due within 12 months.
Centro Group has since restructured and is now Centro Retail Australia.
"The settlement of the proceedings is a commercial decision taken to allow the company to put this matter behind it and continue its focus on adding value for its investors without the distraction and expense of a continuing trial and any subsequent appeals," Centro Retail chairman Bob Edgar said in a statement.
Centro Retail said it would fund its part of the settlement payment from existing cash reserves and loans.
It also said it would issue new securities to some of its securityholders as a result of the settlement.
That would cause a 6.5 per cent drop in its net asset value per security to $2.33, and a 7.0 per cent fall in net tangible assets per security to $2.19.
Centro Retail securities were up six cents, or 3.3 per cent, at $1.9075 at 1055 AEST.
CRF Price at posting:
$1.90 Sentiment: LT Buy Disclosure: Held
