One of the biggest rip-offs in New Zealand corporate history is almost complete with Fay-Richwhite selling shares they bought for 16c each in a deal with government assistance and selling them for $3.60 today, according to New Zealand First Leader, Rt Hon Winston Peters.

“It was Fay Richwhite who were the financial advisors to New Zealand Rail, and who recommended that it be sold in the first place, to another company called Fay Richwhite on the grounds that the shares were worthless and that Tranzrail needed a capital injection. We then saw a deal worked out in which another company called Fay Richwhite bought the shares on credit at a bargain rate, then recapitalised them at a profit. The result of this deal was that Fay Richwhite paid a net 16c per share. We now see another company called Fay Richwhite sell these same strategic assets at a 2250% profit,” said Mr Peters.

“This whole deal is a classic example of how to fleece a gullible state. Instead of modernising Tranzrail and recapitalising the balance sheet, Fay Richwhite have milked it for all its worth, and now that there is nothing left to flog-off they are getting out with a whopping profit.

ENDS

© Scoop Media