The Securities Commission has today made orders against limited partnerships associated with Mr Bernard Whimp. The orders follow misleading offers made by the limited partnerships to buy shares in a number of listed companies.
They require the limited partnerships, through their General Partner Mr Bernard Whimp, to send corrective statements to the shareholders to whom the offers were made.
The statements set out that the Securities Commission has ordered the partnerships to write to the shareholders because the original offer was misleading; that the offer appeared at first sight to be made at above the market value of the shares, but under the fine print the full payment would not be made for 10 years; and that the net present value of the offer is therefore much less than the nominal offer price.
The orders have been made in respect of the following offers, all dated on or around 15 - 18 March 2011:
The Commission has also prohibited those limited partnerships, and other limited partnerships also associated with Mr Whimp, from making unsolicited offers to buy securities in a way that is the same or substantially the same as the March 2011 offers.
The other limited partnerships subject to the prohibition are as follows:
Copies of the orders and of the corrective statement can be found on www.seccom.govt.nz (PDF 541K).
The Commission is also considering taking further action arising out of the misleading offers.