Judge orders Perry to quit 36 million shares
Justice Judith Potter has delivered a resounding victory to GPG plc in its campaign against the Perry Corp shareholding in Rubicon Ltd.
GPG went to court claiming Perry, a New York investment fund, breached New Zealand securities regulations by not properly disclosing its interest in Rubicon, an offshoot of the Fletcher Challenge breakup which has interests in biotechnology businesses, some of its own forestry plus a stake in Fletcher Forests Ltd.
Justice Potter ruled:
Perry must forfeit 12 million Rubicon shares
Perry must sell 24 million Rubicon shares within 180 days, on market & at arm’s length, and no Perry associate may acquire those shares
Perry shall not exercise voting rights in respect of the 24 million shares to be sold
GPG can exceed to 20% ownership limit, set under the takeovers code, as a result of these orders
Rubicon must not pay Perry in relation to the 24 million shares to be sold
Any distributions by Rubicon are to be made pro rata to the holders of the remaining Rubicon shares.Implementing these orders will see GPG’s stake rise from 19.99% to 20.9%. Perry’s stake will fall from 16.32% at Christmas to 7.2%, taking its shareholding from 45.5 million to 9.5 million shares.
GPG made a partial takeover bid for Rubicon last year to take it to 50.1%, but got only 5.78% acceptance instead of the 30.1% it wanted.
Rubicon increased its stake in Fletcher Forests to just under 20% in February.