Whimp targets SkyCity, more offers expected

Wednesday 20th April 2011 4 Comments

SkyCity Entertainment Group shareholders are being targeted by an unsolicited below market offer from a limited partnership associated with businessman Bernard Whimp, forcing the Securities Commission to again warn shareholders against such offers.

SkyCity had earlier said it had been asked for a copy of its share register.

The commission warned shareholders to be wary of an offer dated April 18 from NZ Investment Securities LP to buy their shares for $2.30 per share, which is less than the $3.42 price the shares were trading at on the NZX in afternoon trading today.

The general partner of NZ Investment Securities LP is Whimp, who has been criticised for making lowball offers for shares without providing a comparison with the market price. The commission is taking legal proceedings against NZ Investment Securities LP and other limited partnerships associated with Whimp.

The SkyCity offer suggested that there was an urgent need for investors to act but the commission said it was not aware of any circumstances that would render this suggestion true.

It is not illegal to make an unsolicited offer to buy investments or to offer to buy them at a price below their current market value. It is against the law to mislead or deceive investors into accepting an offer.

The commission said Whimp, and some other people, had recently requested the share registers of a number of other listed companies and it was concerned that other unsolicited offers would be made in the coming weeks.

Any investor who receives an unsolicited offer is encouraged to treat such an offer with great caution - to carefully read the offer in full, including any fine print anywhere on the forms, and to take the time to make a few important checks.

NZPA

Comments from our readers

On 20 April 2011 at 5:42 pm Barry said:

I suggest making him a counter offer at a substantial premium, with payment by Bank Cheque, to be presented by 28 April.

On 20 April 2011 at 5:53 pm Lynne said:

He's paying for the return of his empty envelopes.

On 21 April 2011 at 9:26 pm Grant Hutchings said:

This scumbag has done me out of an unconditional offer to purchase a building in 1998. He confirmed the purchase and then the deposit bounced. My lawyers said he is broke and couldn't afford the damages we could sue for. A total leach on society

On 28 April 2011 at 1:17 am grant quinn said:

I support this guy Whimp. Its a common share market practice to buy low sell high. The real shame is on share holders who don't get a market value before selling them. If you have a share valued at $2 and sell it at $1, then its your own stupid fault. A poor financial decision. It takes no longer than a few minutes to get a share value, either by phone or interenet. Whimp obviously sees NZ people as stupid. And with the success hes had so far he may well be right. Given our current economic status, NZer's all over should conduct due diligence on their financial position. Most of this fuss seems to be over his surname. "whimp". Dealing with a Whimp is a poor decision in its self. So fellow NZer's SHARPEN UP!