Forum Archive Index - October 2003

[Tony <tony@ltdrisk.com>]

Thanks James, that's a comfort.

-----Original Message-----
From: sharechat-owner@sharechat.co.nz
[mailto:sharechat-owner@sharechat.co.nz]On Behalf Of James Pullen
Sent: Friday, October 17, 2003 10:28
To: sharechat@sharechat.co.nz
Subject: Re: [sharechat] TransRail - last few shares


Basically, if (when) they get to 90%, they will have to pay a fair price
for the remaining shares, and this price need not be the same as the
takeover offer price.

Given the Grant Samuel report valued the shares at $1.34 - $1.62 if the
Toll-Crown proposal is implemented (which it now will be), I don't think
they'll get away with only paying $1.10 somehow! This morning they are
trading at around the $1.20 mark so I guess the market agrees. If they
attempt to offer $1.10, it only takes 1% of shareholders (10% of the 10%
remaining) to object in order for an independent (and binding) valuation to
be applied.


Quoting from "Making Money on the New Zealand Sharemarket (Newman &
Briggs)":

"Once a predator reaches the 90% shareholding level, it has 20 business
days to issue an acquistion notice. This notice must be supported by an
independent report confirming that the price offered for the remaining
shares is fair. While the price offered to the remaining 10% need not be
the same as the previous offer, it is unlikely to be less. The price
offered is referred to as the compulsory acquistion price.

Those shareholders holding more than 10% of the remaining shares  then have
10 business days to object to the acquisition price. If no objection is
received then the remaining shares are acquired at the acquistion price.

Should an objection be received, an independent party is appointed to
determine what is a fair compulsory acquistion price - a final price. This
final price may be higher or lower than the acquistion price. All remaining
shareholders would receive the final price, regardless of the size of their
shareholding."





At 10:44 p.m. 16/10/2003, you wrote:
>I am holding some of the last few shares that TOLL want and am wondering
>what will happen to the price when TOLL have their 90%.
>I know they will force me to sell but what will be the price?
>Will it be their offer of $1.10 or the price at the time when they reached
>90%(ie $1.18) or what...?
>
>tony
>
>
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