Most unitholders buy into Waltus proposal
Unitholders in 27 of 29 Waltus property syndicates have agreed to a company proposal to merge their syndicates into one company.
Wednesday, September 6th 2000, 7:30AM
The two syndicates that voted against the proposal were Colonel and Ascot. These two will now stay outside the merged group.
The series of 29 back-to-back meetings were held in Wellington's WestpacTrust Stadium, on Tuesday. Although poorly attended, some were nonetheless fiery affairs.
The most outspoken critic, Murray Weatherston of Financial Focus, tried to question the directors about the discount to net asset backing and why someone in a good syndicate should support a poorly performing one.
Waltus chairman Warwick Hawes tried to quash any discussion saying there was insufficient time available and that adequate information was provided to investors in written documentation.
The company now has to get the merger sanctioned by the High Court. One of the issues that may require attention is buyout terms for dissenting minority unitholders.
Shares in the new company will be traded on the secondary, unlisted market.
Waltus says investors will have better liquidity and improved risk diversification under the new structure.
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