Shotover Jet minorities show the way

Chris Hutching

Saturday 17th April 2004

An independent valuation for the remaining Shotover Jet shares being sought in a takeover might give heart to other "oppressed" minority shareholders in companies targeted for takeover such as Trans Tasman Properties.

A small group of Shotover Jet shareholders held out against the Ngai Tahu holdings takeover offer of $1.03 and one or two even bought in at that level.

A Takeovers Panel-appointed expert has delivered his verdict.

He said the shares are worth $1.18 a share, much to the consternation of Ngai Tahu, which must pay out nearly $600,000 more than anticipated.

The latest valuation took into account improvements in the company's balance sheet over the past 18 months including the period of the takeover offer.

Meanwhile, Trans Tasman Properties shareholders are preparing for a similar long battle with the Asian dominant shareholder, Hong Kong listed SEA Holdings.

SEA Holdings has faced accusations of oppressing minority shareholders.

SEA's offer of 40c a share was considered unacceptable by minorities when the asset backing of the cashed-up Trans Tasman was 63c a share.

The independent directors of Trans Tasman said in a statement to the stock exchange that SEA was refusing to increase the offer price.

However, they brought key issues to the attention of shareholders the net asset value per share is 63c, cash balances are $282 million, the net surplus attributable to shareholders for the year was $40.6 million, repayments of $27.3 million were made to the company secured bond holders.

They have appointed Ferrier Hodgson to prepare an independent report.

If the minorities hold out there may be opportunity for further valuations to be sought as per the Takeovers Code as Shotover Jet shareholders discovered to their satisfaction.

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