STR - Stride Property [ex DNZ Property]

[fungus pudding]

There maybe some hope for existing investors!


http://www.sharechat.co.nz/article/4...dnz-float.html

Yes. DNZ have pulled the pin on the public float, citing the opposition from investors. (I'm not sure if I believe that is the reason.) They will return to the unlisted board in the meantime. Let's hope they do it in a better way than before - when tranactions etc were only shown after 5p.m on Fridays.
Presumably it means that at least distributions will be maintained, and they have always been satisfactory.

[Jay]

DNZ Property Fund is pulling its plan to list on the sharemarket until next year, citing confusion among shareholders due to a debate in the media.
The company is the second to pull an initial public offer (IPO) after dairy company Synlait called off its $150 million IPO last week. DNZ was seeking to raise up to $140m.
All applications received from the prospectus dated November 18 are being refunded.
The company said there has been considerable debate about the merits of the IPO.
"This has resulted in confusion and concern amongst some of our shareholders. As a result, the board feels it has a duty to take time to clarify matters for shareholders and correct any misconceptions.
"It is not appropriate to continue to debate the merits of these transactions in the media."
The debate was damaging the company's future prospects and had potential to undermine the relationship between the board and the shareholders.
"Therefore, the board has taken a decision to defer the process until next year," the company said.
The board said it had received overwhelmingly positive support from the New Zealand capital market and the decision to defer was a difficult one to make.
The company will re-establish the unlisted trading market in its shares.
"The board of DNZ continues to unanimously support the proposed capital raising and listing and firmly believes this is in the best interests of the company and its shareholders," the company said.
The IPO has been criticised by a range of people, including commentator Brian Gaynor, who considers the payment of $43 million for the management company as a one-sided related party transaction of a type that should be outlawed.
There has also been debate about the appointment of highly regarded former fund manager Simon Botherway to the board to increase credibility with investors.

[Jessie]

Yes. DNZ have pulled the pin on the public float, citing the opposition from investors. (I'm not sure if I believe that is the reason.) They will return to the unlisted board in the meantime. Let's hope they do it in a better way than before - when tranactions etc were only shown after 5p.m on Fridays.
Presumably it means that at least distributions will be maintained, and they have always been satisfactory.

I'm afraid they won't be able to maintain distributions at anything like previous levels which were unsustainable. It will be interesting to see what prices are offered on the unlisted market but I suspect they will be well below the 82 cents offered in public float.

[fungus pudding]

I'm afraid they won't be able to maintain distributions at anything like previous levels which were unsustainable. It will be interesting to see what prices are offered on the unlisted market but I suspect they will be well below the 82 cents offered in public float.

You don't seem to be able to get your head around the fact that issuing millions of new shares below assett valuation dilutes the value of existing shares. So now with only the original no. of share they would be a screaming bargain at 82 cents. If the 2 for 5 consolidation is not reversed the price should well exceed that. They should also be able to maintain distributions unless they come under pressure to reduce debt. And if that happens the investors' equity wil rise anyway, so it's not all bad.

[Jessie]

You don't seem to be able to get your head around the fact that issuing millions of new shares below assett valuation dilutes the value of existing shares. So now with only the original no. of share they would be a screaming bargain at 82 cents. If the 2 for 5 consolidation is not reversed the price should well exceed that. They should also be able to maintain distributions unless they come under pressure to reduce debt. And if that happens the investors' equity wil rise anyway, so it's not all bad.

I hope you are right

[Year of the Tiger]

Can anyone tell me what will happen to those who have opted to sell their shares and already sent the form back?

My guess is that those forms will now be torn up.

YOTT

[fungus pudding]

Can anyone tell me what will happen to those who have opted to sell their shares and already sent the form back?

My guess is that those forms will now be torn up.

YOTT

They certainly should be. The shares offered for sale under the proposed diluted structure never actually came into existence, so I can't imagine how anyone could be bound to sell at the lower valuation when the cancellation of the new offer restores the value. In other words-the vendor changed the offer.

[Snapper]

When they were trading on the Unlisted market they were trading at between 40 and 50 cents which is a post-consolidation equivalent of $1.00 to $1.25. When they start trading their price will be what it will be but at least shareholder's equity won't be hammered in the process.

[fungus pudding]

When they were trading on the Unlisted market they were trading at between 40 and 50 cents which is a post-consolidation equivalent of $1.00 to $1.25. When they start trading their price will be what it will be but at least shareholder's equity won't be hammered in the process.

No, the equity won't, but the price might be, as the public will be pretty wary of them until further announcements. So I don't expect miracles. I hope they trade on the normal unlisted board rather than that 'Friday only' setup they had before.

[Jessie]

No, the equity won't, but the price might be, as the public will be pretty wary of them until further announcements. So I don't expect miracles. I hope they trade on the normal unlisted board rather than that 'Friday only' setup they had before.

On paper, DNZ shares have $2 NAV. However, when you subtract the cost of buying out the managers, deferred tax, cost of selling properties and winding up, the true value per share if the company was wound up might be $1.40. If the properties can only be sold at 10% below the last NAV, this further reduces to $1 per share. This is a bit more than the proposed listing price of $0.82 but not much.