Forum Archive Index - October 2003

[James Pullen <james@embedded.co.nz>]

Basically, if (when) they get to 90%, they will have to pay a fair price 
for the remaining shares, and this price need not be the same as the 
takeover offer price.

Given the Grant Samuel report valued the shares at $1.34 - $1.62 if the 
Toll-Crown proposal is implemented (which it now will be), I don't think 
they'll get away with only paying $1.10 somehow! This morning they are 
trading at around the $1.20 mark so I guess the market agrees. If they 
attempt to offer $1.10, it only takes 1% of shareholders (10% of the 10% 
remaining) to object in order for an independent (and binding) valuation to 
be applied.


Quoting from "Making Money on the New Zealand Sharemarket (Newman & Briggs)":

"Once a predator reaches the 90% shareholding level, it has 20 business 
days to issue an acquistion notice. This notice must be supported by an 
independent report confirming that the price offered for the remaining 
shares is fair. While the price offered to the remaining 10% need not be 
the same as the previous offer, it is unlikely to be less. The price 
offered is referred to as the compulsory acquistion price.

Those shareholders holding more than 10% of the remaining shares  then have 
10 business days to object to the acquisition price. If no objection is 
received then the remaining shares are acquired at the acquistion price.

Should an objection be received, an independent party is appointed to 
determine what is a fair compulsory acquistion price - a final price. This 
final price may be higher or lower than the acquistion price. All remaining 
shareholders would receive the final price, regardless of the size of their 
shareholding."





At 10:44 p.m. 16/10/2003, you wrote:
>I am holding some of the last few shares that TOLL want and am wondering
>what will happen to the price when TOLL have their 90%.
>I know they will force me to sell but what will be the price?
>Will it be their offer of $1.10 or the price at the time when they reached
>90%(ie $1.18) or what...?
>
>tony
>
>
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