Vector Limited (VCT)

[lambton]

quote:Originally posted by whatsup

Sounds as Ross Investments is a Nigerian investment scam?

Ross crawls out from under an Australian rock every now and again and fleeces little ol ladies and the gullible out of their bonds at below market. He has been admonished many times by NZ authorities. maybe its time he did time [}][}]
Usually picks on coys that perhaps could be in financial stress Brierley for example earlier on. Picking on Vector wow. I have read the offer that Ross sent to one Vector holder and imo it is tountamount to fraud. The offer suggests Vector either has financial problems (patently untrue as evidenced by the half yearly result to 31/12) or the bonds lack a market (also untrue - looking at the debth of VCT010's there is over 1m sought thru NZX at present at yields ranging from 5.4 to 5.6% pa. This equates to $109.48 per $100.

Come on Vector this guy is giving you a bad name, come on NZ Secys Comm, Commerce Comm and Consumer and any other do good org out there, get on your high horses and bring this guy to justice.
Please don't use slaps with wet bus tickets this time around in the ring with Ross. He needs more than a slap and a tickle before he will desist in trying to rob NZ's more vulnerable investors.

[Sideshow Bob]

Where did they get the list of bondholders from? Either from:

- The company itself
- Or Computershare

No doubt they have to pay for it, but they shouldn't give access to lists to a company such as this.

Maybe someone should complain to Fair Go - at least would get publicity about it!!

SSB


PS - Didn't get around to giving them a call today.

[Bobby_Fischer]

I received his missive and sent it back with a rude note enclosed. I encourage others to do the same - if enough people respond this way it will up the costs of his mailout and be a bit of a pain to his office staff. Who knows, might even deter future campaigns?

[lambton]

quote:Originally posted by Bobby_Fischer

I received his missive and sent it back with a rude note enclosed. I encourage others to do the same - if enough people respond this way it will up the costs of his mailout and be a bit of a pain to his office staff. Who knows, might even deter future campaigns?

Sending back the pre-paid envelope with nothing inside is another way to p#ss him off perhaps.

[rmbbrave]

Vector attacks bond Scavenge

08.03.05
By Chris Daniels


Investment Scavenger�EBob Ross is back in town, this time offering Vector capital bondholders the deal of a lifetime - sell him nearly $11,000 of bonds and get paid about $9000.

Auckland-based energy network company Vector is angry at the way its bondholders have been approached by the Australian, saying names and addresses should not be available for such purposes.

A retired dentist based in Bendigo, Victoria, Ross has come under fire for making similar offers over the past few years.

He was warned by the Commerce Commission in June 2003 that a similar offer he made to BIL International investors to buy debt securities was misleading and deceptive.

There is nothing illegal about offering bond or shareholders below-market prices, but the commission is interested in Ross because of the possibility his unsolicited letters may breach the Fair Trading Act.

The letter to bondholders stated: "Ross Investments buys securities in companies and trusts which have financial problems and/or which have a limited market."

Vector said the letter was "inappropriate and misleading" and implied financial problems.

"It is unfortunate organisations such as Ross Investments are legally able to gain access to such databases and use them in this way," it said.

"Vector has referred the matter to the appropriate regulatory authorities and strongly recommends that all bondholders who receive the letter do not accept the offer before seeking independent advice."

Ross told the Business Herald yesterday that he was not implying there was any trouble at Vector. Ross Investments "normally" targeted firms in financial difficulty or struggling - which did not mean Vector.

The company had been in business for 16 years, often buying from people who were "winding up" estates and who might not know a broker. Brokers often required extra paperwork and could not be bothered dealing with small parcels.

Ross Investments would pay money quicker than brokers and was good value for those with small holdings, he said. "It's a reasonable price," Ross said.

Direct Broking director David Speight made a complaint to the commission about the offer Ross made last year to Kiwi Income Property Trust unit holders.

Speight said Ross was again making misleading claims in letters to Vector bondholders. It was not true there was limited market for the bonds, as $7.87 million had changed hands since February 28.

Ross was offering $9050 for 10,000 bonds. Speight said a client selling the same amount through Direct Broking would pay $54.75 brokerage, but end up with $10,894 for their efforts.

"There's wall-to-wall buyers and no sellers," he said.

Vector bonds, while paying 9.75 per cent interest, also carry preferential rights in the company’s looming partial privatisation and initial public offering of shares.

Leading share and bond registry Computershare has asked the Securities Commission to investigate a law change, so names and addresses of bondholders do not have to be provided to companies such as Ross Investments.

Securities Act law covers the sale of bonds and shares, but has no control over what happens when they are later traded. A new securities legislation bill before Parliaments Commerce Select Committee will cover general "dealing misconduct".

[rmbbrave]

Trust threatens to unplug Vector float

26.03.05
By PAUL PANCKHURST


Energy giant Vector's share float - the biggest planned for New Zealand in 2005 - may be killed by the company's owner, the Auckland Energy Consumers Trust.

Vector's management and board are committed to a float of 24.9 per cent of the company after spending $880 million last year on a 66 per cent stake in gas transmission and distribution company NGC.

However, the trust is poised to appoint an investment bank to assess alternative fundraising deals, including a proposal from an Australian company that invests in energy assets, DUET (Diversified Utility and Energy Trusts).

Tensions are high between the trust and the growth-hungry company that it owns. The trust itself - famously dysfunctional - also appears to be split into two factions.

New Zealand's largest consumer trust represents the 290,000 consumers in Auckland City, Manukau City and parts of Papakura who share Vector's profits via credits on their power bills.

Vector is a big business. It delivers electricity and gas in the Auckland and Wellington regions and has assets of $4.76 billion and debt of $3.1 billion.

Vector's board includes chairman Michael Stiassny (Ferrier Hodgson), Tony Gibbs (Guinness Peat Group), Greg Muir (Pumpkin Patch) and John Goulter (former managing director of Auckland Airport).

A source said some trustees were "trying to backtrack" on an initial public offering of shares expected in the third quarter of this year.

"The trust are fighting among themselves about whether there should be an IPO or a private equity deal."

A financial markets source said a deal with DUET would involve a split of Vector assets - with the trust retaining the Auckland assets - and a joint management company. DUET is managed by Macquarie Bank and AMP Capital.

DUET is believed to have shown an interest last year in Australian Gas Light's 66 per cent stake in New Zealand gas company NGC - the stake later bought by Vector.

It is understood DUET is not the only party interested in a deal.

One of the trustees, John Collinge, said the trust was divided between trustees backing a float "at any cost" and those with open minds.

Sharemarket investors had thought the float a certainty.

The notion of alternatives contrasts with trust chairman Warren Kyd's statement on November 3, when he "confirmed the public offering will take place in the next 12 months".

But Kyd now says: "The original transaction" - he would not spell out what that meant - "did require us to look at alternatives."

Vector sold $354 million of PIPES - pre-IPO equity securities - and raised $526 million of senior debt to buy the stake in NGC.

Vector's financial adviser, investment bank ABN Amro, holds the PIPES, which convert into ordinary shares if the money is not repaid by December 13. That would mean ABN Amro would own a chunk of Vector.

Vector's six-month report said the money must be repaid "from the proceeds of an IPO".

The five people on the consumer trust are: Kyd, deputy chairman Shale Chambers, Michael Buczkowski, Collinge and Karen Sherry. Four of the five were elected on the Auckland Citizens & Ratepayers Now ticket, which supported partial privatisation under certain conditions.

However, the four fell out, with Collinge and Buczkowski opposing a float and Kyd and Sherry supporting one.

The fifth trustee, Chambers, was elected on a no-privatisation platform.

Last year, Kyd went to the High Court to have Collinge barred from a trust vote that could have blocked Vector's plans to buy the NGC stake and then float on the sharemarket.

A judge ruled Collinge had a conflict of interest because of his family's ownership of $200,000 of Vector bonds. (Collinge still has the interest in the bonds.)

Kyd used his casting vote to give the plans the green light.

[shasta]

If Vector do not float soon via an IPO, then the NZX has been grossly misled, as has NGC shareholders.

Not too mention VCT have gone too far down the road incurring massive debt etc.

It still remains such a redundant structure & the Trust had better get used to public scrunity, i would image those opposed to it will be replaced by trustees in favour, should they decide to derail this.

Hold NGC & will do until i receive a scrip offer from Vector, anything less and VCT will never get 90% of NGC.

[Dazza]

the trust is a waste of time IMO.

its been ages since this topic has been told, i mean just get the thing IPO'ed -_-

i mean trust members taking each other to court -_-

[rmbbrave]

Vector silent on sharemarket listing - or not

30.03.05
By CHRIS DANIELS


Energy network company Vector is keeping mum on news that its only shareholder, the Auckland Energy Consumer Trust, is exploring ways to avoid a sharemarket listing.

Vector’s corporate bonds - which carry preferential rights in any share float - fell in price yesterday, their yields rising to more than 5 per cent.

Despite both company and trust saying a sharemarket listing will take place before the end of the year, the trust is about to appoint an investment bank to assess alternative fundraising deals.

These include a proposal from an Australian company that invests in energy assets, Duet (Diversified Utility and Energy Trusts).

A Duet spokeswoman said the company did not comment on "market speculation".

The fund has yet to make any investments in New Zealand since listing in Australia last year.

It does, however, say it wants to invest in energy assets on this side of the Tasman.

News of the trust investigating float alternatives, first reported in the Weekend Herald, has triggered a fall in the popularity of its corporate bonds.

Direct Broking director David Speight said the news had "definitely had an impact".

The previous price premium that was in the market before, based on the expectation of a float, was not there.

[rmbbrave]

Crunch time for share float as Vector and trust meet

13.04.05
By PAUL PANCKHURST


It is crunch time for the biggest sharemarket float planned for this year - the $550 million to $650 million initial public offering by energy giant Vector.

The company's owner, the Auckland Energy Consumers Trust, is due to meet Vector today.

The Business Herald was told the company was "looking for a green light to get cracking with the IPO".

One investment banker said: "My pick is that the IPO will get the green light - but I would be staggered if it was unanimous."

The publicly elected trust has been looking at alternatives to a share float, despite the company's explicit advice that a float is the only commercially sensible option.

One proposal, from Australia's DUET - a listed company managed by Macquarie Bank and AMP Capital - is for the trust to retain 100 per cent ownership of the Auckland electricity network but reduce its ownership of other assets.

Vector's management and board are committed to selling 24.9 per cent of the company in a float after spending $880 million last year on a 66 per cent stake in gas transmission and distribution company NGC.

Only two of the trust's five members - chairman Warren Kyd and Karen Sherry - supported Vector's plans to buy the NGC stake and then float.

One trustee, John Collinge, was blocked from voting because of a conflict of interest and Kyd's casting vote approved the company's plans.

Vector has said that $354 million of PIPES - "pre-IPO equity securities" - from investment bank ABN Amro that helped fund the NGC share purchase must be repaid "from the proceeds of an IPO".

If the money is not repaid by a December or January deadline, the securities convert into ordinary shares and ABN Amro - Vector's financial adviser - will own a chunk of the company, which it would presumably onsell.

The Business Herald was told ABN Amro would get the shares at a significant discount to a market value calculated by looking at similar listed companies.

Vector also faces millions of dollars in penalties via two "step-up" fees to ABN Amro if the PIPES are not repaid quickly enough.

The trust's regular monthly meeting is today and financial market sources say the trust may decide whether to appoint an investment adviser to look at float alternatives.

Kyd and trust executive officer Gary Sturgess refused to comment.

Power play

* Owned by trust representing 290,000 power users.
* Delivers electricity and gas in the Auckland and Wellington regions.
* Has assets of $4.76 billion and debt of $3.1 billion