The Securities Commission is warning all debenture-holders in Strategic Finance Limited to be wary of another offer by Stock & Share Trading Company Pty Limited to buy their debentures for five cents in the dollar.
Earlier this year the Commission issued two warnings about similar offers made by Australian-based Stock & Share Trading Company for debentures issued by Strategic Finance and St Laurence Finance Limited.
While it is not illegal to make an unsolicited offer to buy investments or to offer to buy them at a price below their current market value, it is against the law to mislead or deceive investors into accepting an offer.
The Commission reminds investors to be cautious of any unsolicited offer to purchase their investments, especially where the offer is well below face value and seek independent, professional advice before making a decision to accept any offer.
When a finance company is in receivership it is very difficult to accurately assess the value of the company's debentures. The debentures are not trading on any organised market, so there is no market price against which investors can assess the offer.
Investors who receive unsolicited offers are encouraged to carefully read the offer and take the time to make a few important checks. See further guidance on the Commission's website (http://www.seccom.govt.nz/invest/articles/270810.shtml).
Rebecca Barclay 04 471 7666