SPP's

[nelehdine]

Anybody come across the problem of us Kiwi's not being able to participate in Aussie SPP's ?? . I hold AMU in 2 seperate accounts and they are "SPP ing" at $1 with the shares trading at $1.20 this afternoon. I thought I was eligible to therefore buy 10,000 shares at $1 ea so a paper profit of A$2k ... very nice I'm thinking. Low and behold they ASX release on the details yesterday states that the offer is to all holders with Australian regisered addresses. I'm pretty keen to add to my 72,500 shares and would be gutted if I missed out. Comments please.

[OldRider]

It seems that mostly ASX SPP's are available for
NZ and Australian residents only, apparently
fulfilling regulatory requirements simply isn't worth the effort for the small amount of capital to be raised from other countries.

Occasionally, it seems NZ holders suffer the same fate, not very often thankfully.

I don't own AMU so have no knowlege of it, but recently I missed out on the Alinta Infrastructure Trust offer, and earlier than than that Australian Infrastructure Trust.

Sadly I found nothing I could do within the time limits. I Would be interestd for the future if a solution is available.

[Dimebag]

Neleh

I believe it is extraordinary that companies should be allowed to discriminate against shareholders on the basis of residence in this fashion. If this is what the law permits, I personally would regard it as thoroughly unsatisfactory.

However, this is not the first time I have seen such a policy. ATR's rights issue permitted only holders domiciled in Au or NZ to participate. Fortunately NZ was included.

A quick call to the company might shed a bit of light? Otherwise, an internet search of the law pertaining to ausy SPP might be worthwhile, although it is highly unlikely a ASX listed company would have lodged a non-compliant SPP.

Good luck - let us know how you get on.
Dimebag

[whirl]

OldRider,

In regards to the time limit of SPP's you can usually arrange with the company to receive a TT (telegraphic transfer) and then fax the details of it to them.

I'm pretty sure it's a TT, if anyone else can confirm this it would be good. I think the details of what to do is in the PNA thread (quite early on ) if you want to go searching.

whirl

[TerryA]

Nelly,

I have also had this problem with both SPPs and New Issues. I have always been able to overcome it by asking the Company to send me the application or by downloading it. The Application Form is often included in the announcement to the ASX.

I queried the exclusion of NZ Residents with one company recently and the reason given was that it was a new issue and the prospectus had not been registered with the CC here. They happily accepted my "unsolicited" offer as that, apparently, is within the law of both Australia and N.Z.

As no Prospectus is required for a SPP it should not be an issue in this instance.

Be wary of getting the documents by mail. I have just received one for a SPP two days before closure.

Good luck.


Whirl,

>> In regards to the time limit of SPP's you can usually arrange with the company to receive a TT (telegraphic transfer)<<

I've tried that but it seems to depend on the Company or the Registry as to whether they will give you the Bank Account details to enable the T/T to be made.

Some will also not accept a faxed application even if the original is in the mail.

If the time limit is under four weeks I use the downloaded application form, arrange a Bank Draft (usually 24 hours to my local Branch) and mail them both off straight away. Keep photocopies of both the application and the draft.

So far no problems.

Regards,

[nelehdine]

Thanks for all the great advice , it seems all is not lost and I should be able to take part. Will let you all know how I got on.

[OldRider]

It seems some have had success getting an allocation in an SPP in which NZ residents were excluded, simply by getting an application form
and sending it in. On the one occasion I tried this my cheque was returned with a note that I did not qualify, I had an NZ address.

I will be waiting with interest for the follow up
from Nelehdine ,I hope he posts exactly what he does and what happens.

I wonder if success or failure depends on whether the company involved has the offer under or over subscribed?

[nelehdine]

Big setback today ... rec'd an e-mail from Computershare who told me that under the terms & conditions of the AMU SPP they will reject all applications from shareholders who don't have an Aussie address. I have asked them who I can complain to, to my mind this is discrimination and I thought that was illegal in both Oz and NZ. I will have a chat to my lawyer tomorrow, I don't intend to give up my $2,300 potential profit without a decent fight !!!

[nelehdine]

Could you guys give me a list of a few Aussie companies where NZers were invited to participate through the offer. Cheers

[OldRider]

NELE: CEY ATR HIL MAP AUO ENV CSL AWE OMP

Check these companies ,I think each has made
an SPP in the last two years , that was available to NZ holders.

As posted above, NZ address holders of ALN were excluded from applying for the ALN Infrastructure Trust within the last month or so.

[nelehdine]

Thanks OldRider, I have e-maild the secretary of AMU and asked her to provide me with reasons why they have chosen not to make the offer open to Kiwi holders. AWE is a good comparison and have provided her details of their "NZ inclusive" plan. Hopefully the company will change the details of the plan to include their Kiwi "part owners" of the company.

Will keep you all informed of my progress. Plan closes on 1/11/05 so still a few weeks up my sleeve.

[TerryA]

You can add GDY and POL (very recently) to the list of those that included NZ Shareholders in their SPps.

[Bobco]

And NWE, announced SPP last week, opens today, closes 28 Oct.
Documents probably won't get to me in NZ much before then! Then there is making funds available somehow, getting the bank draft, posting back, could take a while.
They don't make it easy for us.
Have found in the past that it can be more profitable (and a whole lot simpler) to just buy on market, sometimes cheaper as well as was TYC which was not open to NZ holders.

[limegreen]

MIG also included NZers in their recent SPP

[nelehdine]

Success !! AMU announced an amended SPP today to the ASX to include NZ holders in the offer. Seems all my hard work and 7 e-mails to the co. sec and ASX wasn't in vain. A$2k is my reward !! ... well worth it and a good lesson to all. We own a little bit of these co's, they should and obviously do sometimes listen to the "little guy" !!

[Lizard]

Well done nelehdine! Good to know that it's worth pursuing if it happens again. Thanks.

[OldRider]

Nelehdine: Well done, you deserve the reward. Indeed a lesson for me, and others I suspect as well, who have rolled over and let things be.

[Bobco]

Nelehdine: could you tell us with whom you communicated at ASX, am going to make some points with them re NWE SPP. My offer document arrived in mail yesterday, closing date on Friday 28th, and since the record date was 13th Oct there simply is not fair time allowed for process to be successful, certainly unfair on NZ shareholders.