Trans Tasman support half-hearted

By Phil Boeyen, ShareChat Business News Editor

Monday 21st May 2001

A proposal to swap Trans Tasman Properties (NZSE: TTP) shares for secured bonds won't be going ahead although there will be a change to the company's capital notes

The company has announced that the proxies received at a special meeting of shareholders in Auckland this morning indicates insufficient support for the proposal.

A proposal to swap Trans Tasman Properties (NZSE: TTP) shares for secured bonds won't be going ahead although there will be a change to the company's capital notes.

Trans Tasman shareholders have defeated a proposal to change their shares into bonds, with 76.1% voting against the resolution.

Under the capital reorganisation the company's majority shareholder, Hong Kong-based SEA Holdings, would have become the only shareholder while other shareholders would receive secured bonds with a 10% coupon rate.

The idea behind the plan was to give minority shareholders a chance to share in the company's operating surpluses.

Chairman, Don Fletcher, says while the majority of shareholders who voted supported the share arrangement resolution, it was not supported by the larger and institutional shareholders.

"The majority of the small shareholders wish to have a regular and secure income stream while it appears that the larger and institutional shareholders are willing to forgo a distribution of income, and wait for a recovery in the NZ property market."

However capital noteholders agreed to swap their notes for bonds with 90.7% voting in favour.

Following the meetings Mr Fletcher says it will be "business as usual" for the property company.

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