Board Announce Timetable For Review
25 November 2005
Capital Properties Board Announce Timetable For Review
The new board of Capital Properties New Zealand Limited today announced the programme for a review of the Capital Properties business following the takeover by AMP Property Portfolio Investments Limited.
The review was foreshadowed in AMP Property Portfolio's offer document which indicated that, if the offer became unconditional, AMP Property Portfolio would seek majority representation on the Capital Properties board and support the Capital Properties board in conducting a rigorous review of the existing assets, operations, policies (including distribution policies) and capital structure of Capital Properties.
As at 23 November 2005, AMP Property Portfolio had received acceptances which would give it 71.6% of the voting rights in Capital Properties.
Newly elected chairman of the Capital Properties board, Murray Gribben said, "The board has committed to completing this review during December 2005. No dividends will be paid pending the announcement of the outcome of the review. The outcome of the review, including future dividend policy, will be announced before the end of January 2006."
The board of Capital Properties now comprises existing directors Murray Gribben, Michael Cashin and James Ogden, newly appointed director Rob Morrison and one other director yet to be named. Mr Gribben is Head of Alternative Assets for AMP Capital Investors (New Zealand) Limited and a non-independent director. He joined the board in July 2005 following his nomination to the board by AMP Property Portfolio. Mr Cashin and Mr Ogden continue as independent directors and comprise the Independent Directors' Committee for the purposes of the AMP Property Portfolio offer. The new non-independent director on the board is Rob Morrison, Director of Asian Investments, AMP Capital Investors Australia, who has been nominated by AMP Property Portfolio. Rob Morrison's appointment is subject to final confirmation.
Stephen Costley, General Manager of AMP NZ Property Fund (the owner of AMP Property Portfolio), was originally proposed as a new Capital Properties board member. However as Mr Costley will continue to manage AMP Property Portfolio, Mr Costley has decided not to proceed with being a director of Capital Properties.
AMP Property Portfolio's Offer has been extended and declared unconditional, and now closes at 11.59pm on 1 December 2005. Shareholders who accepted the offer by the initial closing date of 16 November 2005 should have now received the $1.48 per share offer price.