Published 6 August 2010
South Canterbury Finance Ltd has told NZX Regulation a financial advisor’s pessimistic view on its recapitalisation’s chances of success, in a letter to clients, may have brought about the sharp drop in the price of its listed perpetual preference shares.
Chief executive Sandy Maier responded to NZX Regulation business leader Garth Stanish’s inquiry: "South Canterbury Finance is aware that a financial advisor has written to clients who hold perpetual preference shares, expressing the view that the recapitalisation process currently being pursued by the company is unlikely to be successful and setting out the potential implications for perpetual preference shareholders if that is the case.
“South Canterbury Finance confirms that positive discussions are continuing with parties who remain interested in participating in the proposed recapitalisation of the company.”
Mr Stanish said in his letter to South Canterbury the share price fell on Tuesday from $16.50 on opening to $10 at the close, a 39.4% fall. They made it down to $9 on Wednesday. Want to comment? Go to the forum.
Attribution: NZX release, story written by Bob Dey for the Bob Dey Property Report.