Trans Tasman plan fair says report

By Phil Boeyen, ShareChat Business News Editor

Thursday 12th April 2001

Share and note holders in Trans Tasman Properties are getting a fair deal under the company's capital reorganisation plans according to an appraisal report.

The property investment company wants to rearrange its capital to give regular payments to minority shareholders.

Despite posting operating surpluses of more than $20 million in recent years, TTP's majority shareholder, SEA Holdings, doesn't support the payment of dividends.

Under the reorganisation proposal minority shareholders will get 35 one dollar secured bonds for every 100 ordinary shares. The bonds will earn quarterly interest payments at 10% a year and can be redeemed for cash in 2011.

This effectively values the shares at 35 cents compared with a trading value of 19 cents before details of the capital reorganisation were released.

Capital Convertible Note holders will get a one dollar bond for each one dollar note. They will also earn quarterly interest payments at 10% a year but can be redeemed for cash in 2007. Notes have been trading at 85 cents.

An appraisal report by Grant Samuel values TTP shares at between 30 and 40 cents, and says the assessed value of the offer at between 30 and 35 cents a share is therefore fair to shareholders.

The report also says that noteholders will be getting more favourable terms than currently.

Meetings of both shareholders and noteholders to consider and vote on the proposal are scheduled for the end of next month in Auckland and will require 75% acceptance. SEA will not vote at either meeting.

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