NWF - NZ Windfarms

[Silverlight]

Disgraceful behaviour by NWF.

I still don't quite understand why this is disgraceful? A right to buy is issued for every share you own, or in this case 3 rights for every 8 shares. If you support the company and want to buy more then you can buy the rights on the market?

This is how every company has completed their rights issues in the past 18 months, FPA, NPX, KIP, NZX, PGW, were these also disgraceful?

[mr.needs]

I still don't quite understand why this is disgraceful? A right to buy is issued for every share you own, or in this case 3 rights for every 8 shares. If you support the company and want to buy more then you can buy the rights on the market?

This is how every company has completed their rights issues in the past 18 months, FPA, NPX, KIP, NZX, PGW, were these also disgraceful?

I think the point mouse is making is that with the other rights issues you were able to apply for a number of new shares over and above the number of rights you held. For example, you may be entitled to 1000 rights, purchase another 1000 on market giving a total of 2000 rights. If the rights issue allowed over-subscriptions you would be able to apply for more shares than the 2000 rights allow. Lets say you apply for a total of 3000 shares, you are guaranteed 2000, but as the the issue was not fully subscribed you are also allocated another 500 (from the 1000 over-subscription). Now of course you could have just purchased an extra 500 rights on market to get you the same 2500 shares, but this would have cost you the purchase price of the rights (approx one third of the share price). In the example you do not have this cost. Over-subscriptions effectively allow you to apply for free rights! (which you may or may not be allocated depending on whether or not the issue is fully subscribed).

Obviously allowing over-subscriptions is desirable for small shareholders. If the issue is under-subscribed, the deficit is filled with the over-subscriptions coming from the small shareholders. What is most likely to happen in the case of NWF is the unsubscribed rights are effectively given to institutions or the underwriters for free.

I'm not entirely sure about all the examples you gave but I know that with the PRC rights issue last year over-subscriptions from small shareholders were allowed.

[mouse]

I think the point mouse is making is that with the other rights issues you were able to apply for a number of new shares over and above the number of rights you held. For example, you may be entitled to 1000 rights, purchase another 1000 on market giving a total of 2000 rights. If the rights issue allowed over-subscriptions you would be able to apply for more shares than the 2000 rights allow. Lets say you apply for a total of 3000 shares, you are guaranteed 2000, but as the the issue was not fully subscribed you are also allocated another 500 (from the 1000 over-subscription). Now of course you could have just purchased an extra 500 rights on market to get you the same 2500 shares, but this would have cost you the purchase price of the rights (approx one third of the share price). In the example you do not have this cost. Over-subscriptions effectively allow you to apply for free rights! (which you may or may not be allocated depending on whether or not the issue is fully subscribed).

Obviously allowing over-subscriptions is desirable for small shareholders. If the issue is under-subscribed, the deficit is filled with the over-subscriptions coming from the small shareholders. What is most likely to happen in the case of NWF is the unsubscribed rights are effectively given to institutions or the underwriters for free.

I'm not entirely sure about all the examples you gave but I know that with the PRC rights issue last year over-subscriptions from small shareholders were allowed.

And that is the entire argument. Can investors have any confidence in NWF when they have stumped up with $1.10 a share only 12 months ago and now see their holding diluted in such a massive manner. Yet to reduce that dilution they have to buy extra rights which are given away 'for free' to major investors. The small shareholder should be very careful about NWF. I topped up PRC rights, but cannot do the same with NWF. Disgraceful. Shocking, behaviour by NWF.

[mouse]

More comment on NWF. Link
http://www.briangaynor.co.nz/blog/20...-the-show.html
Make what you will of it. I am totally unimpressed.

[Arthur]

Not to keen on the noise review announcement though.

[kiora]

Some volume through today.Whos buying?Who''s selling???

[bryndlefly]

wow, thats some volume alright - over 5.5 million (5,540,146)

[Financially dependant]

wow, thats some volume alright - over 5.5 million (5,540,146)

Most of the turnover was from one transaction at 22c

1:56:30 pm 22 5,345,000 $1,175,900 Block Special Crossing

prearranged by the look of it

[kiora]

Higher volume with selling presure over tha last 2 weeks than previous.Vector +/= Windflow Technologies buying/selling??? End of portfolio selling now?

[bryndlefly]

as at 09:55:13, Thursday 07 October, 2010 (NZDT)
SSH: NWF: SSH (AMP Capital Investors (New Zealand) Limited )

NWF
07/10/2010 09:55
SSH

REL: 0955 HRS NZ Windfarms Limited

SSH: NWF: SSH (AMP Capital Investors (New Zealand) Limited )

Disclosure of movement of 1% or more in substantial holding or change in
nature of relevant interest or both
Sections 23 and 24, Securities Markets Act 1988
Relevant event being disclosed: A movement of 1% or more in the substantial
holding

Date of relevant event: 6 October 2010
To: NZX
And: New Zealand Windfarms Limited
Date this disclosure made: 7 October 2010
Date last disclosure made: 4 May 2010
Substantial security holder(s) giving disclosure
Name(s): AMP Capital Investors (New Zealand) Limited
Contact details: Amelia Hamilton, +64 4 494 2110,
amelia.hamilton@ampcapital.co.nz
Summary of substantial holding to which disclosure relates
Class of listed voting securities: Ordinary Shares

Summary for: AMP Capital Investors (New Zealand) Limited
For this disclosure,--
(a) total number held in class: 42,910,828
(b) total in class: 288,063,584
(c) total percentage held in class: 14.896%
For last disclosure,--
(a) total number held in class: 39,019,805
(b) total in class: 288,050,389
(c) total percentage held in class: 13.546%
Details of transactions and events giving rise to relevant event
Details of the transactions or other events requiring disclosure under the
instructions to this form: A purchase of 3,891,023 shares between
04/05/2010 and 6/10/2010.

Details of relevant interests in substantial holding after relevant event
Details for: AMP Capital Investors (New Zealand) Limited
Nature of relevant interest(s): Investment Manager and non-beneficial owner
of securities
For that relevant interest,--
(a) number held in class: 42,910,828
(b) percentage held in class: 14.896%
(c) current registered holder(s) of securities: AMP Capital Investors
(New Zealand) Limited
(d) registered holder(s) of securities once transfers registered: Not
applicable
Additional information
Nature of connection between substantial security holders: Not applicable