Chorus to cover brokerage for small shareholders wanting to sell

Wednesday 16th March 2016

Chorus will cover brokerage fees for small shareholders wanting to sell their parcels in a scheme that could whittle down the regulated telecommunications network operator's register by a sixth.

The Wellington-based company intends to set up a facility where it will sell parcels of 100 shares or less on behalf of those shareholders, covering their brokerage fee, it said in a statement. About 5,000 of Chorus's 30,000 shareholders own small parcels, which are worth at most $1.98 million, or about 0.1 percent of the network operator's market value.

Investors will have to opt out of the sale by June 24, either lifting their stake above 100 shares or notify registry service Computershare if they want to keep their shares.

Chorus shares last traded at $3.96 and have increased 1.3 percent so far this year. The stock is rated an average 'hold' based on seven analyst recommendations compiled by Reuters, with a median stock price of $4.05.

BusinessDesk.co.nz

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