DNZ Property to tap shareholders for $35M

DNZ Property to tap shareholders for $35M to pay for management contract

By Paul McBeth

June 8 (BusinessWire) – DNZ Property Fund Ltd., the property investor that grew out of the relationship between Dominion Funds and Money Managers, will look to shareholders to fund the buy-out of its controversial management contract from Paul Duffy and Alastair Hassell.

Chairman Tim Storey said the company will put a $35 million pro rata offer to existing shareholders, followed by a bookbuild to unsubscribed shares, after its board last week agreed to pay Duffy and Hassell the same amount for their management contract with both DNZ and the Diversified Fund.

“This offer structure had been designed to enable maximum participation by existing shareholders with the funds raised to be used to reduce the company’s debt levels,” Storey said in a statement. “We believe this capital raising initiative will be supported by shareholders.”

Hassell and Duffy offered to sell their contract for $43 million as part of the aborted bid to list on the NZX. Shareholder MMG Advisory rallied investors to block the bid, prompting new director Simon Botherway to step down from the board, and forcing a special meeting that elected MMG’s David van Schaardenburg to the board.

Shares in DNZ resumed trading on the Unlisted platform today, and gained 1.3% to 80 cents, and accounting for around three-quarters of shares changing hands on the bourse today.

(BusinessWire)

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