DNZ listing goes ahead after succesful capital raising

Thursday 8th July 2010

Shareholders in DNZ Property Fund have voted overwhelmingly in favour of a capital raising plan that will see the property investor list on the NZX next month.

Some 98% of shareholders agreed to the bid to raise as much as $45 million through a pro-rata share issue to existing investors, followed by a bookbuild for new parties. DNZ terminated its controversial management contract with Paul Duffy, who is now chief executive, and Alastair Hassell earlier this month at a cost of $35 million, and brought it in-house.

“Our next move is to get the offer documents to market shortly, with a view to listing by mid-August,” chairman Tim Storey told BusinessDesk.

The float will be the first on the NZX this year, and only the second in the past three years. DNZ aborted a listing last year after shareholder MMG Advisory rallied investors to block the bid, and forced a meeting that elected MMG’s David van Schaardenburg.

As at March 31, DNZ owned 58 properties with a portfolio value of about $700.1 million.

Businesswire.co.nz

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