The NZX have advised the market today that Fonterra Co-operative Group Limited has received notice from Washington Securities Pty Ltd that it intends to make an unsolicited offer to bondholders to purchase their Fonterra 7.75% bonds due 10/03/15 (NZX: FCG010).
Washington Securities is intending to offer bondholders $0.80 per bond, significantly less than the current market value (which was $1.07438 per bond at the close of trade on Wednesday 14 August 2013).
The proposed offer is expected to open on 19 August and close on 7 October 2013.
However, bondholders should be aware that Washington Securities may make further offers to targeted groups of bondholders over the next six months.
This is not the first time Washington Securities has made unsolicited offers to New Zealand investors, having targeted other listed debt and equity issuers in recent months.
Fonterra strongly recommends that any bondholder who receives a letter from Washington seek independent financial advice and check the most recent market price for their bonds at ww.nzx.com/markets/NZDX/bonds/FCG010.
Bondholders are under no obligation to accept any offer or to take any action in respect of it. Further, bondholders have the right to cancel any acceptance of the offer up to 10 working days after the date on which they accepted the offer.
For further indicative bond pricing investors can refer to our bond section here.
7 Comments
More to the question.
What is the financial implications/expectations of the dudd pipe/blocked market access etc, etc. If any....
Whats happened to market disclosure. We note the Harbour mgt chaps could not see why shares were greater than $7 before the pipe......
Okay , I dont know , its just a suggestion , but then again its a free market so I suppose we should simply let them be .
It is quite unfair , because many of these folk were persuaded to buy these assets by Financial Advisors , to get the income streams .
People like my Mom (aged 77) has some shares and property trust units and does not actually know what the assets are worth , nor does she know how to check the value , because she does not use the internet .
The Govt has already introduced measures apparantly
From 1 December the Securities Markets (Unsolicited Offers) Regulations came into effect to rein in unsolicited or low-ball share offers. Alongside other measures, the new regulations will set minimum information requirements, including stating the market price or a fair estimate of the value of shares, and specifying a minimum offer period and a cancellation period.
How much more should be done to protect people from their own stupidity?
There's always the Heartland Bank approach which I covered earlier in the week here - http://www.interest.co.nz/business/65829/heartland-bank-moves-combat-lo…
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