Sharechat Logo

NZX lashes inaccuracies in Chorus solvency coverage

Friday 11th October 2013

Text too small?

NZX, the stock market operator and supervisor, has rapped media reports in latching on to a lobby group's comments on listed company Chorus's solvency.

The stock market operator took the unusual step of explaining that it doesn't comment on individual issuers' financial positions, and that it has accepted Chorus's confirmation that it is complying with continuous disclosure rules. Listed companies have to adhere to disclosure rules, keeping the market informed if any events will have a material impact on their value.

The telecommunications network operator's solvency has become a bone of contention since a combined communications sector and consumer lobby group latched onto comments by Prime Minister John Key as part of their bid to stop government intervention on regulated pricing for Chorus's ageing copper network.

Key told a breakfast television show that without intervention Chorus could "go broke" under a new pricing regime proposed by the Commerce Commission.

"In this instance, due to the misleading statements made, NZX would like to clarify that based on the information available to NZX, NZX has no reason to challenge Chorus's view that it remains in compliance with its continuous disclosure obligations under the NZSX Listing Rules," NZX said in a statement.

The stock market operator said media reports repeating claims by the lobby were a "misrepresentation of NZX's position" in that it doesn't comment on individual issuers.

NZX typically communicates with listed companies to ensure they are complying with the rules, which can prompt issuers to make announcements, it said.

The stock market operator has made more than 60 enquiries regarding continuous disclosure this year.

BusinessDesk.co.nz

  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:

Chorus sees growth in high value gigabit fibre plans
Arvida gets 87% uptake in $92 mln rights offer
NZ dollar weakens after US retail sales boost greenback
17th July 2019 Morning Report
Dairy product prices gain for first time in five auctions
MARKET CLOSE: NZ shares fall in listless trading; power companies gain
Gold Report 16th July 2019
NZ dollar rises after CPI meets expectations; US dollar weakens
Yili's Westland takeover gets OIO approval
Govt eyes 2025 for farm-level emissions pricing

IRG See IRG research reports