Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

H&G Offer For Rural Equities Shares


H & G Extends Partial Offer For Rural Equities Shares And Will Consider Price Increase

H & G Ltd, which has made a partial offer for Rural Equities Ltd, today announced an extension of the offer from June 24 to July 8 2004 and indicated that it will consider increasing its current $1.25 per share offer.

H & G Ltd and certain of its associates already control about 35 percent of Rural Equities Ltd. If it succeeds with its partial offer for 2,303,551 shares in Rural Equities, H & G and associated interests will control 50.1 percent of the company, with H & G owning 40.83 percent.

H & G Director David Cushing said today the situation had become somewhat confusing for shareholders since Wellington based St Laurence Equities Ltd had launched a rival bid for 100% of the company, only to abandon it on Friday.

"St Laurence has also made a "Claytons" stand in the market for 19.9% of the company late last week."

"In fact, what they are asking Rural Equities shareholders to do is to make a binding offer to sell to St Laurence, without St Laurence having any obligation to purchase the shares, while St Laurence remains free to accept offers on a different basis."

"Shareholders should have no doubt that H & G is in this for the long haul. We know Rural Equities and the agricultural sector well and our intention is to create value and act in the best interests of shareholders. There is nothing opportunistic about our bid."

"We want to offer shareholders fair value for their shares on a straightforward and easily understood basis. They can also stay with the company as it moves forward and participate in its future under our direction."

"We expect to make another statement after the next H & G Board meeting on June 18 when we have reviewed, with our advisers, the changed situation which has arisen since St Laurence abandoned its 100% bid on Friday," said Mr Cushing.

Mr Cushing said shareholders should follow the latest advice of the Rural Equities independent directors and do nothing for the moment, until they received further advice.

Shareholders who have already accepted H & G's offer will be paid at the higher rate if H & G decides to increase its offer.

Rural Equities was split off from Hawkes Bay rural services firm Williams and Kettle earlier this year. It manages the New Zealand Rural Property Trust and also owns 32 percent of the Trust.

A letter has been sent to Rural Equities Ltd shareholders outlining H & G's position.

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Media Mega Merger: StuffMe Hearing Argues Over Moveable Feast

New Zealand's two largest news publishers are appealing against the Commerce Commission's rejection of the proposal to merge their operations. More>>

Elsewhere:


Approval: Northern Corridor Decision Released

The approval gives the green light to construction of the last link of Auckland’s Western Ring Route, providing an alternative route from South Auckland to the North Shore. More>>

ALSO:


Crown Accounts: $4.1 Billion Surplus

The New Zealand Government has achieved its third fiscal surplus in a row with the Crown accounts for the year ended 30 June 2017 showing an OBEGAL surplus of $4.1 billion, $2.2 billion stronger than last year, Finance Minister Steven Joyce says. More>>

ALSO:

Mycoplasma Bovis: One New Property Tests Positive

The newly identified property... was already under a Restricted Place notice under the Biosecurity Act. More>>

Accounting Scandal: Suspension Of Fuji Xerox From All-Of-Government Contract

General Manager of New Zealand Government Procurement John Ivil says, “FXNZ has been formally suspended from the Print Technology and Associated Services (PTAS) contract and terminated from the Office Supplies contract.” More>>