Securities Commission cautions St Laurence investors on low ball offer

The Securities Commission is warning St Laurence investors to be "wary" of an 8 cents in the dollar low ball offer from an Australian company for their debentures in the stricken finance company. The offer is from Stock and Share Trading Company Pty Ltd which prior to last week's receivership, offered St Laurence debenture holders 20c in the dollar. Stock and Share Trading's sole director, John William Armour, has an Adelaide address. Its primary place of business in New Zealand is listed as Auckland’s PricewaterhouseCoopers Tower with the address for the person authorised to accept service in New Zealand listed as Prudentia Law of Newmarket. Read the Securities Commission's full statement below:

WARNING: UNSOLICITED OFFER FOR ST LAURENCE FINANCE DEBENTURES Debenture-holders in St Laurence Finance Limited should be wary of an offer by Stock and Share Trading Company Pty Ltd to buy their debentures for 8c in the dollar. The Securities Commission urges investors to seek professional advice before making a decision about the offer. It is very difficult to accurately assess the value of a finance company’s debentures when it is in moratorium or receivership. As these debentures are not trading on any organised market there is no market price for investors to compare the offer against. They should be especially wary when an unsolicited offer is for well below face-value. “Such an offer does not mean that 8c in the dollar is the true value of the securities,” Commission Chairman Jane Diplock says. “Offers sometimes try to exploit doubts about the value of debentures, so it’s important that investors get advice from a reputable financial adviser before coming to a decision.” It is not illegal to offer to buy securities below their face value, but such offers must not be misleading or deceptive.