DNZ halts Unlisted trading as capital raising vote looms

Thursday 1st July 2010

DNZ Property Fund has halted trading in its shares on the Unlisted exchange as it gears up for next week's vote on whether to sell shares that would trade on the NZX.

Shareholders in the property investor will vote next week on whether to accept a $35 million pro rata offer, followed by a bookbuild for new investors, as it tries for a second time to win approval to list on the NZX. Shareholder MMG Advisory rallied support last year to block DNZ’s first attempt to list on the stock exchange, and forced a meeting that elected MMG’s David van Schaardenburg as a director.

“Various parties involved are onside, and shareholders are supportive having gone through the process of meetings already,” chairman Tim Storey told BusinessDesk.

“If we get approval, we’ll move quickly to get the listing.”

Last month DNZ Property announced it will buy out its controversial management contract with Paul Duffy and Alastair Hassell for $35 million, $10 million of which will be pumped back into the business. That’s $8 million less than what was offered in the company’s aborted attempt to list last year.

The $35 million raised will be used to pay down debt and buy out Duffy and Hassell.

The company said it doesn’t expect trading to resume until after an application has been made to list shares on the NZX. The shares have surged almost 18% to 93 cents since they resumed trading last month, with almost $270,000 of stock changing hands.

Businesswire.co.nz

Comments from our readers

No comments yet