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


Shareholders should ‘read between the lines’

1 December

Capital Properties shareholders should ‘read between the lines’

AMP Property Portfolio said today the updated recommendation from Capital Properties’ independent directors in response to AMP Property Portfolio’s offer is surprising in light of the current level of acceptances. The updated recommendation was made in a letter addressed to shareholders today.

“We’ve had a very positive response from the majority of shareholders. We currently hold or control almost 79% of Capital Properties’ voting rights, and that total is climbing every day,” said Stephen Costley, General Manager of AMP Property Portfolio.

“The letter actually sets out good reasons for accepting the offer. In fact, we suggest that shareholders join the dots and come to their own conclusion.

“It’s interesting to see that the independent directors have taken particular care to draw shareholders’ attention to the caveats in their previous letter (3 November). The independent directors’ committee believed holding shares in Capital Properties over the medium to long term was likely to produce a higher value outcome ‘on balance’, and ‘assuming the company continued with its current policies and strategies’.

“Today they state that given the review announced by the new Board last week, there is ‘no assurance that the existing policies of the company, including dividend policies, will be continued under AMP Property Portfolio control’.”

The Capital Properties Board has indicated that the outcome of its review of Capital Properties, including future dividend policy, will be announced before the end of January 2006. “Another point the independent directors quote from their previous letter is that following their recommendation ‘may not produce the highest value outcome for all Capital Properties shareholders’.

They also repeat that if the Offer becomes unconditional at a level below the 90% required for compulsory acquisition—which it has—they believe ‘it is likely that the share price will trade at a level below the $1.48 offer price, possibly for some time into the future’. As a result, ‘acceptance of the offer may represent a higher value outcome than holding the shares and accruing dividends and capital growth over the short to medium term’,” said Mr. Costley.

“With AMP Property Portfolio now holding almost 79% of the stock, a position that controls special resolutions, it seems even more likely that the share price will fall below the Offer price when the Offer closes on 23 December.” AMP Property Portfolio extended the Offer yesterday. The Offer will now close at 11.59pm on 23 December 2005 (subject to any extension in accordance with the Takeovers Code). The Offer has become unconditional in all respects.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Postnatal Depression: 'The Thief That Steals Motherhood' - Alison McCulloch

Post-natal depression is a sly and cruel illness, described by one expert as ‘the thief that steals motherhood’, it creeps up on its victims, hiding behind the stress and exhaustion of being a new parent, catching many women unaware and unprepared. More>>


DIY: Kiwi Ingenuity And Masking Tape Saves Chick

Kiwi ingenuity and masking tape has saved a Kiwi chick after its egg was badly damaged endangering the chick's life. The egg was delivered to Kiwi Encounter at Rainbow Springs in Rotorua 14 days ago by a DOC worker with a large hole in its shell and against all odds has just successfully hatched. More>>


Trade: Key To Lead Mission To India; ASEAN FTA Review Announced

Prime Minister John Key will lead a trade delegation to India next week, saying the pursuit of a free trade agreement with the protectionist giant is "the primary reason we're going" but playing down the likelihood of early progress. More>>



MYOB: Digital Signatures Go Live

From today, Inland Revenue will begin accepting “digital signatures”, saving businesses and their accountants a huge amount of administration time and further reducing the need for pen and paper in the workplace. More>>

Oil Searches: Norway's Statoil Quits Reinga Basin

Statoil, the Norwegian state-owned oil company, has given up oil and gas exploration in Northland's Reinga Basin, saying the probably of a find was 'too low'. More>>


Modern Living: Auckland Development Blowouts Reminiscent Of Run Up To GFC

The collapse of property developments in Auckland is "almost groundhog day" to the run-up of the global financial crisis in 2007/2008 as banks refuse to fund projects due to blowouts in construction and labour costs, says John Kensington, the author of KPMG's Financial Institutions Performance Survey. More>>


Health: New Zealand's First ‘No Sugary Drinks’ Logo Unveiled

New Zealand’s first “no sugary drinks logo” has been unveiled at an event in Wellington... It will empower communities around New Zealand to lift their health and wellbeing and send a clear message about the damage caused by too much sugar in our diets. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news