Sharechat Logo

DNZ Property elects to buy out management contract

Monday 17th May 2010

Text too small?

DNZ Property Fund, the property investor that had a capital raising exercise slapped down by shareholders last year, will buy out its controversial management contract with Paul Duffy and Alastair Hassell.

Chairman Tim Storey said the new board unanimously decided to internalise the company’s management structure and “do away with the previous A and B shareholders structure, which is a major impediment to listing the company.”  

The price will be “considerably below the bottom end” of the two independent valuations by Deloitte and Northington Partners, and the price agreed with the manager last year, he said. The two firms put the value of the contract at between $40 million and $51 million, and Hassell and Duffy offered to end it for some $43 million in November.  

The contract came to the fore during the company’s unsuccessful bid to float on the NZX when shareholder MMG Advisory rallied investors to shoot down the proposal. The rumblings caused new director Simon Botherway to step down from the board, and resulted in a special general meeting that elected MMG’s David van Schaardenburg last week.  

“We heard the issues but we also clearly understood that shareholders want us to move forward and put the company on a footing that will lead to improvement of value in their shares and a sustainable dividend policy,” Storey said in a statement.  

As part of the deal, Duffy will stay on as chief executive, and it will use its asset sale programme to buy out the contract.  

DNZ Property Fund grew out of the relationship between Dominion Funds and Money Managers, and has a portfolio value of some $700 million.  Storey said the company will put forward an equity raising proposal at its annual meeting in June or July.

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Winton announces timing of its Annual Results
Fletcher Building Announces Director Appointment
Meridian issues new demand response exercise notice to NZAS
CRP - Chatham Closes Private Placement of Shares
General Finance - Olympic Term Deposit Promotion featuring a Special Bonus of 0.1%
July 22nd Morning Report
VCT - Operational performance for the year ended 30 June 2024
Challenge to banks the way to go
Bigger returns or lower risk?
NPH - Director Appointment