Sharechat Logo

Strategic Finance censured, fined over sale disclosure

Monday 22nd September 2008

Text too small?
Strategic Finance, the finance company being acquired by its managers, was censured and fined by NZX Discipline over the way it disclosed details of the plan to some brokers prior to telling the exchange.

NZX Regulation imposed a NZ$20,000 fine. Managers, directors and partner BOS International last month agreed to acquire the business from Allco HIT in a deal valued at about NZ$90 million.

According to the determination, released today, Strategic called certain brokers on August 7 about the sale of its parent, without having informed the NZX. The breached widened the following day when it released information on the transaction to a wider group, it said.

The group will pay NZ$25 million cash, inject NZ$15 million of new funds into the business and acquire loans for NZ$50.2 million as part of the acquisition. BOS International will increase its debt facilities to the company to NZ$150 million from NZ$100 million.

Under the acquisition plan, holders of its debentures, notes and preference shares are being asked to accept new terms, with the bulk of the securities to be replaced by new debt instruments that trade on the NZX.

By Jonathan Underhill



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

FreshLeaf: Cannabis on course to be 'medicine of the masses'
Arvida Group Limited (NZX: ARV) to Acquire Arena Living Retirement Living Portfolio
My Food Bag Group Limited (NZX: MFB) Market Update and HY Results Announcement Date
Harmoney Corp Limited (NZX: HMY) Delivers Record September Quarter
Vital Healthcare Property Trust (NZX: VHP) Announces Successful Completion of $115m Placement
14th October 2021 Morning Report
General Capital Limited (NZX: GEN) Completes Greenfern Listing
LISTING AND QUOTATION NOTICE: NZX MAIN BOARD - GREENFERN INDUSTRIES LIMITED
13th October 2021 Morning Report
Hotel Montreal: Patterson Family Buys Christchurch's Hotel Montreal