ADDRESS: Australia
REASON FOR WARNING: Multiple unsolicited offers.
OTHER INFORMATION: We are reminding investors to be wary of unsolicited offers being made by Stock & Share Trading Company Pty Limited for shares and other securities. Stock & Share's offers are often for significantly less than the market value of the securities.
Stock & Share has regularly been making unsolicited offers and continues to do so. We are aware of two current offers by Stock & Share, one for certain capital notes issued by Fletcher Building Industries Limited and the other for shares in TOWER Limited. Stock & Share has also recently requested registers of security holders from a number of other entities, including ASB NZ Property Trust, so it is likely that it will be making further unsolicited offers.
Since October last year, Stock & Share has been required to carry an FMA warning statement on any unsolicited offers it makes, pursuant to an enforceable undertaking provided to FMA. The warning statement encourages investors to make informed decisions by recommending that they talk to an Authorised Financial Adviser (AFA) about what their investment is really worth and by disclosing the market price of the securities, or alternative pricing information if the securities are not listed.
FMA also advises investors that VonWin Capital Management L.P. intends to make an offer to the bondholders of Irongate Property Limited (In Receivership) who have expressed an interest in selling their bonds.
FMA has also asked that VonWin Capital Management include a warning in any offer they send to Irongate bondholders.
UPDATED: 3 September 2012, 21 December 2011, 8 July 2011
The Financial Markets Authority urges you to treat this offer with great caution.
Before you accept it, carefully read the details of what you will be paid and when, and any fine print anywhere on the offer or forms.
Make an informed decision - seek advice from an authorised financial adviser, a Community Law Centre, or Citizen's Advice Bureau.
Even if you've been asked to respond urgently, take the time to make a few important checks:
- How much will you receive for your investment? Check the most recent market price for your investment and compare it with the price you are being offered. For listed companies, the most recent price is available on the NZX website www.nzx.com and in newspapers.
If your investment isn't traded on any organised market (for example because it is an interest in a failed finance company), find out how much it is likely to be worth from a authorised financial adviser, the company that offers the investment, or (if the company you invested in is in receivership) from the receivers. Receivers reports can give a good indication of how much you are likely to receive for your investment. You can find copies of the receivers reports by searching under the companies name on the Companies Office website www.companies.govt.nz.
- When will you get paid? Make sure you understand when and how you will get paid. It may be that you won't get paid for some time after you've handed over your investment.
- Who is making the offer? Check who you are dealing with, and consider whether they are trustworthy and likely to pay you.
The Financial Markets Authority regulates New Zealand's financial markets. Our main objective is to promote fair, efficient and transparent financial markets. To find out more about us and for help with investing see www.fma.govt.nz.
DATE: 15 November 2010
WARNING: Further Unsolicited Offer for Strategic Finance Debentures
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).
Ends
DATE: 28 July 2010
WARNING: Unsolicited Offer for Dorchester Finance Debentures
Debenture-holders in Dorchester Finance Limited should be wary of an offer by Stock & Share Trading Company Pty Limited to buy their debentures for 5c in the dollar.
Stock & Share Trading Company, which is based in Australia, had previously made similar offers for debentures issued by Strategic Finance Limited and St Laurence Finance Limited.
The Securities Commission reminds investors to be cautious of any unsolicited offer to purchase their investments, especially where the offer is well below face value and urges investors to seek professional advice before making any decision to accept the offer.
When a finance company is in moratorium 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 in Dorchester Finance Limited have voted to approve the capital reconstruction plan. In making their decision whether or not to accept the offer to purchase their debentures, debenture-holders should consider, together with other relevant factors, the value that the directors of Dorchester Pacific Limited, the parent company of Dorchester Finance Limited, have attributed to the securities to be issued under that plan.
Under securities legislation it is not illegal to offer to buy securities below their face value. Any offer to buy securities from investors must not be misleading or deceptive.
Ends
DATE: 11 June 2010
WARNING: Further Unsolicited Offer for Strategic Finance Debentures
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).
Ends
DATE: 6 May 2010
WARNING: Unsolicited Offer for St Laurence Finance Debentures
Debenture-holders in St Laurence Finance Limited should be wary of an offer by Stock and Share Trading Company Pty Ltd to buy their debentures for 8c in the dollar.
The Securities Commission urges investors to seek professional advice before making a decision about the offer.
It is very difficult to accurately assess the value of a finance company's debentures when it is in moratorium or receivership. As these debentures are not trading on any organised market there is no market price for investors to compare the offer against.
They should be especially wary when an unsolicited offer is for well below face-value.
"Such an offer does not mean that 8c in the dollar is the true value of the securities," Commission Chairman Jane Diplock says. "Offers sometimes try to exploit doubts about the value of debentures, so it's important that investors get advice from a reputable financial adviser before coming to a decision."
It is not illegal to offer to buy securities below their face value, but such offers must not be misleading or deceptive.
Ends
Related
Case: Stock & Share Trading Company Pty Ltd - Enforceable undertaking/ Order
