Property shareholder dismisses liquidation gambit

By Phil Boeyen, ShareChat Business News Editor

Wednesday 1st May 2002

The majority owner of Trans Tasman Properties (NZSE: TTP) says a proposal to wind up the company is ill conceived.

Guinness Peat Group (NZSE: GPG) has proposed putting the listed property company into liquidation and has issued notice for a special resolution to be put to members at the annual shareholders meeting in Wellington on May 20.

The proposal would need 75% of shareholder votes to be passed, which means it needs the support of majority shareholder SEA Holdings.

In a letter to Trans Tasman commenting on the proposal SEA Holdings says that TTP constitutes a significant part of its investment portfolio and is central to its strategy of being a significant long-term investor in New Zealand and Australia property markets.

"We are aware that TTP's share price has, regrettably, under-performed and we share the disappointment of all shareholders in this respect," the letter says.

"We do not, however, agree with GPG's views, as set out in their letter, as to the cause of the under-performance. We also do not subscribe to GPG's ill-conceived proposal to resolve the issue through winding-up."

SEA Holdings says it's pleased with the return from the construction and sale of TTP's six-storey development in Maritime Square in Auckland and also supports the company's programme of non-core assets sales, including four Wellington properties.

"Accordingly, we believe that a winding up (or even the proposal to wind up) is ill-conceived, potentially risky, disruptive to TTP's business and, therefore, damaging to all shareholders."

"We will not support any such proposal and, therefore, we will vote against the winding up resolution."

SEA Holdings also says it will also vote against the resolution to appoint GPG directors Gary Weiss and Tony Gibbs as liquidators.

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