Trans Tasman properties cleared after panel investigation

By NZPA

Wednesday 26th February 2003

Trans Tasman Properties (TTP) was today cleared by the Stock Exchange's market surveillance panel of breaching listing rules over its investment in Professional Broking Services (PSB), a supply chain management and e-procurement business.

The investigation was triggered by complaints that TTP purchased two chunks of PSB that constituted a material transaction in terms of the exchange's listing rules.

TTP is 55 percent owned by Hong Kong's Sea Holdings, which at the time of the purchases owned 24.9 percent of PSB. Jesse Lu was a member of the board of TTP and Sea and Don Fletcher was on the board of both TTP and PSB.

Last year, Guinness Peat Group (GPG) attempted to get TTP wound up because of its lack of performance. GPG's Gary Weiss attacked Sea's management of the company.

The listing rules were amended on December 1, 2002 so that a material transaction could constitute "a transaction or a related series of transactions" but the panel ruled that because of the timing of the change, it did not apply.

TTP bought 12.5 percent of PSB on December 21, 2000, just below the threshold of 5 percent of TTP's capitalisation that constitutes a material transaction. The directors said at that time that TTP had no rights or obligations to buy more PSB shares. Then, on April 30, 2001 it bought another 5 percent of PSB.

The panel said the issue was whether the two acquisitions constituted a single transaction in terms of the listing rules.

"On the basis of the facts put forward by TTP... the panel concluded the two acquisitions were not one transaction," it said.

It would take no further action.

Comments from our readers

No comments yet