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

 


NZX won't cancel Lyttelton Port trades after takeover notice

NZX won't cancel Lyttelton Port trades after routine notice included takeover details

By Jonathan Underhill

Aug. 6 (BusinessDesk) - NZX, the stock market operator, says it won't cancel trades in Lyttelton Port Co shares made after the release of a substantial security holder (SSH) notice that included first news of a takeover proposal for the company.

Port Otago sent an SSH notice to the NZX last Friday afternoon that announced it had entered a lock-up agreement for its holding of about 15.5 percent with majority owner Christchurch City Holdings (CCH), which intended to make a full takeover of the listed Lyttleton Port at $3.95 a share. Port Otago gave Lyttleton no advance notice of the plan, which included a special dividend of 20 cents.

Investors who saw the notice drove the price up 24 percent to $4.10, leaving some shareholders disgruntled that they had been blindsided and demanding the trades be reversed. The stock was subsequently halted for the release of statement from CCH about the plan.

About 42,534 shares changed hands in 13 trades ranging from $3.30 to $3.59 between the SSH being released at 2.24pm and the stock being halted at 2.57pm, for a total value of less than $150,000. Lyttelton Port has 102 million shares on issue, although more than 90 percent is held by CCH and Port Otago. The shares traded recently at $4.10, valuing the company at $419 million.

"NZX is confident that all market participants, traders and investors, both on the buy and sell sides, had access to the same information at the same time in relation to the proposed takeover," the market operator said in statement, as part of its review of Friday's events.

Because Lyttelton Port had no prior knowledge of the proposal it didn't breach any disclosure rules, while CCH and Port Otago are not listed companies required to disclose anything beyond their SSH filings, NZX said. It described Lyttelton's lack of prior knowledge as "unusual" but doesn't consider there has been a breach of its rules for market participants.

Still, the stock market operator said it is reviewing its process for the release of SSH notices.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Must Sell 20 Petrol Stations: Z Cleared To Buy Caltex Assets

Z Energy is allowed to buy the Caltex and Challenge! petrol station chains but must sell 19 of its retail sites and one truck-stop, the Commerce Commission has ruled in a split decision that acknowledges possible retail price coordination between fuel retailers occurs in some regions. More>>

ALSO:

Huntly: Genesis Extends Life Of Coal-Fuelled Power Station To 2022

Genesis Energy will keep its two coal and gas-fired units at Huntly Power Station operating until 2022, having previously said they'd be closed by 2018, after wringing a high price from other electricity generators who wanted to keep them as back-up. More>>

ALSO:

Dammed If You Do: Ruataniwha Irrigation Scheme Hits Farmer Uptake Targets

Enough Hawke's Bay farmers have signed up for water from the proposed Ruataniwha Water Storage Scheme for it to go ahead as long as a cornerstone institutional capital investor can be found to back it, its regional council promoter announced. More>>

ALSO:

Reserve Bank: OCR Stays At 2.25%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2.25 percent, in a decision traders had said could go either way, while predicting inflation will pick up as the slump in oil prices washes out of the data and capacity pressures start to build in the economy. More>>

ALSO:

Export Values Down: NZ Posts Biggest Annual Trade Deficit In 7 Years

New Zealand has recorded its biggest annual trade deficit since April 2009, reflecting weaker prices of agricultural commodities such as dairy products, beef and lamb, and increased imports of vehicles and machinery. More>>

ALSO:

Currency Events: NZ's New $5 Note Wins International Banknote Award

New Zealand’s new Brighter Money $5 note has been named Banknote of the Year in a prestigious international competition. The $5 note was awarded the IBNS Banknote of the Year title at the International Bank Note Society’s annual meeting. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news