NZRPT target of bid
The New Zealand Rural Property Trust has once again found itself the target of unwanted attention.
Thursday, September 14th 2000, 11:25PM
Ross Investments general manager Robert Ross, has written to all the unitholders offering to buy their units at 75.5 cents each.
Currently units in the trust are trading on Sharemart between 78 and 80 cents each, although the net asset value per unit is running at around $1.53.
NZRPT Management chairman Sir Selwyn Cushing has written to unitholders telling them that it may be possible to get a higher price for the units on the secondary market.
His letter does not tell unitholders not to accept the offer.
Sir Selywn says that the trust's directors are of the view "that the outlook for the trust is sound given the prevailing economic conditions."
"The pending harvest of Ngaruawahia Forest will enable the trust to significantly increase distributions to unitholders in the medium term," he says.
Ross describes his company as one that has much experience in buying distressed assets including unlisted shares, debentures, notes and interest in contributory mortgages.
He targets securities in companies and trusts which have had historical liquidity issues and/or which have a limited market.
Included in his list of past acquisitions are Whakatu Afforestation Trust, Australasian Property Holdings, Victoria Park Markets Trust, Registered Securities Ltd contributory mortgages and debenture stock in Burbery Mortgage Finance and Savings, Equiticorp Holdings and IFC Securities.
Ross doesn't say why he wants to buy into the trust. However, he says the benefit for investors is that they get cash for their holdings, which should be tax free, plus there are no commission or brokerage charges.
The offer is open until October 16.
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