By Phil Boeyen, ShareChat Business News Editor
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Thursday 29th November 2001 |
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NZOG says it plans to give shareholders one Pan Pacific share in addition to each share they hold in the New Zealand business, absorbing 115.2 million of the company's 126.4 million PPP shares.
The distribution is being made because the company believes Pan Pacific is not getting the recognition it deserves at the NZOG share level.
"By owning the PPP shares direct, NZOG's shareholders will be better able to appraise and make their own decisions on this investment.
"The separation of ownership of the two companies will also enable NZOG to allocate its funds to its direct activities, without inhibiting PPP from raising any new equity capital if needed in the future."
The company says it has no plans at present to change the existing working relationship between the two companies, which share staff and facilities.
"To avoid creation of unmarketable parcels of PPP shares, holders of less than 2,000 NZOG shares will receive the cash proceeds (indicatively NZ10 cents per share) from the on-market sale of their Pan Pacific share distribution," the company says.
A vote to approve the distribution is due at a special general meeting next month.
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