Horizon shareholders warned against low-ball offer

Tuesday 10th January 2012

Horizon Energy Distribution chairman Rob Tait has advised shareholders not to sell their shares after many were approached with a conditional offer to sell at a below-market price by Zero Commission NZ.

Shareholders were approached with a buying price of $3.07 per share, however the last share trade on Jan 9 valued the shares at $3.40.

“We recommend that shareholders seek independent advice if they are uncertain about this matter or are contemplating selling their Horizon shares,” Tait said.

Low-ball share offers were under the spotlight in 2011 after a law change was made to curb investors such as Bernard Whimp, who convinced thousands to part with their shares at up to a third less than market price.

Last year Zero Commission made below-market price offers for shares in King Country Energy and Tenon, a timber company.

Responding to comparisons with Bernard Whimp in June, Zero Commission defended its position in offering low-ball prices for Tenon, saying it targets investors with small parcels of shares that aren’t worth selling through a broker because of the fees involved, Fairfax reported at the time.

BusinessDesk.co.nz

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