Rangatira

[Southern Lad]

The annual result for the year ended 31 March 2021 was pretty positive. The annual report released on Friday notes that the board are currently reviewing the capital structure. The report states:

"In 2020, we began a process to gauge the level of interest amongst shareholders to reviewing our Group structure, with the motivation of ensuring it is fit for purpose for all our shareholders and positions Rangatira for the future. Goals identified through this review are below:

i. To improve the tax efficiency for charitable shareholders, without compromising non-charitable shareholders, in light of charitable shareholders losing the benefit of any imputation credits.
ii. To be easy for investors to understand – we had received feedback that the A and B share structure was not well understood.
iii. To not compromise liquidity for any shareholder group.
iv. To allow for Rangatira to raise further capital in the future, should the supply of good investment opportunities increase. With shareholders requiring a consistent dividend flow, as Rangatira becomes fully invested, to grow Rangatira must recycle existing holdings for new investments, which may not always be in the long-term interest of the Group.
v. A structure that allows for Rangatira to easily move investments between listed, cash, fixed income and private company holdings.
vi. Preserve the intentions outlined in the current Constitution.

We will keep shareholders informed as we progress any proposals for change".

There are some big question here, and it will be interesting to see where the process ends up. Maybe some sort of PIE structure?