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

 

Auckland Port Study: Port To Ship Out – No Departure Date

Interest groups in Auckland and its waterfront chose a group of representatives to determine the future of the port. Their consensus is that the Port is going to have to move but not before a credible location is confirmed... More>>

ALSO:

Tax: GST Threshold For Online Purchases Won't Lower Before 2018

The government wants to lower the threshold on online purchases which qualify for GST from mid-2018, but says more work is needed and there will be no change without public consultation. More>>

ALSO:

North Canterbury: Government Extends Drought Classification

The government has extended a drought classification for the eastern South Island until the end of the year, meaning the area will have officially been in drought for almost two years, the longest period for such a category. More>>

ALSO:

Negotiations Fail: Christchurch Convention Centre Build To Proceed Without PCNZ

After protracted negotiations, the government has ditched the construction consortium it picked to build Christchurch's replacement convention centre, which it now anticipates delivering at least two years behind the original schedule. More>>

ALSO:

Other Centres' Convention Centres:

Ruataniwha: Greenpeace Launches Legal Challenge Against $1b Dam Plan

Greenpeace NZ is launching a legal challenge against a controversial plan to build a dam that’s set to cost close to $1 billion and will pollute a region’s rivers. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news