Capital Properties claims victory in takeover spat

CNZ says the dispute arose out of an aborted takeover of Shortland Properties, which it now owns.

It claims that Shortland incurred substantial costs in considering a takeover by a Kiwi Income subsidiary and, following a decision not to proceed, sought to recover those costs.

Part of the dispute centred on the fact that the takeover offer had not been formalised, but the High Court held that a formal offer was not necessary and that the subsidiary was liable for the costs incurred by Shortland in considering the offer.

"CNZ is pleased with the decision as it gives substance to the principal purpose of takeover legislation - to protect shareholders of the company being taken over," the company says in a statement.

Capital Properties says the amount of costs to be recovered has not been ruled on but it will now move to have the matter determined.

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