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

 


TRS shareholder Choiselat mum on support for Mega listing

TRS shareholder Paul Choiselat mum on support for Mega reverse listing

By Paul McBeth

March 26 (BusinessDesk) - Paul Choiselat, the controlling shareholder of TRS Investments, is staying mum on whether he’ll agree to a deal to list Kim Dotcom’s Mega data storage and encryption company until he sees the paperwork.

Auckland-based TRS plans to buy Mega for $210 million by issuing 700 million shares at 30 cents apiece to Mega shareholders, after undertaking a 148 for 1 consolidation. Mega shareholders would own 99 percent of TRS, which would adopt Mega as its name.

Choiselat’s family interests own 73 percent of TRS, making his support for a reverse listing of Mega vital if he retains his stake when shareholders vote on the transaction. If he backs the Mega deal, his family interests would end up owning about 5.4 million shares, or 0.77 percent of Mega, worth $1.64 million at the 30 cent valuation.

Choiselat hasn’t been on the TRS board in about five years, and wasn’t involved in the transaction, he told BusinessDesk in an email.

“As such, I will consider the matter when documents get circulated to shareholders for the shareholder vote which will be required,” Choiselat said. “Similarly, I can’t comment on what we might do with our stake in the future.”

The Mega deal sparked a flurry of activity in TRS shares yesterday, with a record volume 42.6 million shares, or 3.8 percent of the company’s stock, changing hands. The price surged 900 percent to a seven-year high 1 cent, valuing the company at $11.1 million, and the Choiselat family stake at $8.1 million.

Mega chief executive Stephen Hall said yesterday he hopes to conclude the deal in May, though that timeline could slip as various regulatory approvals are needed for it to proceed.

Hall said the company doesn’t plan to raise any capital in the immediate future, though it may consider a share purchase plan to let existing TRS shareholders get a meaningful stake in Mega after their share consolidation.

In the background, Melbourne-based Paul Choiselat is currently facing 25 charges relating to market manipulation and concealing his interests in listed companies while he was a director of Q Ltd and Jimbuck Entertainment. The charges were laid by the Australian Securities & Investment Commission in December.

On March 20 the Melbourne Magistrates Court ordered an adjournment for a committal mention on April 7.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Scoop Business: Productivity Commission To Look At Housing Land Supply

The Productivity Commission is to expand on its housing affordability report with an investigation into improving land supply and development capacity, particularly in areas with strong population growth. More>>

ALSO:

Forestry: Man Charged After 2013 Death

Levin Police have arrested and charged a man with manslaughter in relation to the death of Lincoln Kidd who was killed during a tree felling operation on 19 December 2013. More>>

ALSO:

Smells Like Justice: Dairy Company Fined Over Odour

Dairy company fined over odour Dairy supply company Open Country Dairy Limited has been convicted and fined more than $35,000 for discharging objectionable odour from its Waharoa factory at the time of last year’s ”spring flush” when milk supply was high. More>>

Scoop Business: Dairy Product Prices Decline To Lowest Since July 2012

Dairy product prices dropped to the lowest level since July 2012 in the latest GlobalDairyTrade auction, led by a slump in rennet casein and butter milk powder. More>>

ALSO:

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news