Shotover buyer puts pressure on Ngai Tahu

Chris Hutching

Friday 23rd January 2004

Minority shareholders in Shotover Jet are continuing to buy shares above the 90c takeover price being offered by majority owner Ngai Tahu.

Before Christmas Ngai Tahu had 88.3%, just shy of the 90% compulsory takeover level. But to force the takeover at 90c, Ngai Tahu must achieve acceptances for at least half the outstanding shares according to takeover rules, which means they must reach 94.1%.

Minority shareholder Anthony Kandziora, of Auckland, acknowledged he had placed buying orders in recent days lifting the price to $1.04 a share and swelling his holding to more than 750,000 shares.

Other minority shareholders were intensely interested in discovering Kandziora's plans, with some of them fearful he might be a Ngai Tahu stooge because he has used the same broker as Ngai Tahu.

But Kandziora told The National Business Review yesterday he was buying because he valued the company considerably higher than the Ngai Tahu offer price.

Just before Christmas, the independent directors commissioned a valuation repor. It places the value in the 97c to $1.10 range and independent director David Stock has advised shareholders to seriously consider selling at the mid-point of the range, about $1.03. (One shareholder values the company at $1.20 a share.)

Minority shareholders are also puzzled by the silence from Ngai Tahu about progress in obtaining acceptances, with the last communication from the company in mid-December.

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