Botherway quits DNZ board

Thursday 11th February 2010

Former corporate crusader Simon Botherway has quit his position on the board of DNZ Property Group just months after accepting the role.

His resignation comes after unitholders and investors stymied an attempt to restructure the company, buyout the management contract and list on the NZX.

Fellow board member Mark Hopkinson has also decided to step down to concentrate on his other interests.

DNZ Chairman Tim Storey also announced DNZ would be "temporarily deferring a scheduled dividend payment" as the board works to resolve the company's future.

He has confirmed that the board was in ongoing discussions with MMG over the future direction of the business and said he expected some clarity around the company's plans in the near future.

In the meantime the dividend payment has been deferred from February 11 until February 25 at the latest.

"We have written to shareholders to keep them informed and we will make some payment before the end of this month."

"There will be some impact on our ongoing dividend policy from those future direction discussions and it makes sense to pause briefly until we can give our shareholders more certainty.

"The delay is unfortunate because the February payment is usually one that is welcomed by our shareholders after the Christmas break. I stress it is just for a couple of weeks and we hope it is not a major inconvenience for shareholders expecting their dividend this week."

Storey said the board had also signed off on limited asset sales to help address its current debt levels.

"Those asset sales may offset the short term concerns around bank debt levels and tougher restrictions on lending - a response to last year's worldwide credit crunch - but the longer term positioning of the company remains uncertain.

"Removing that uncertainty will allow us to focus more on how we continue to strengthen the business and maintain sustainable dividends and restore shareholder value for our investors."

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