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St John Board Announces Share Buy Back Offer

Fuseworks Media
Fuseworks Media

St John Balanced Property Fund Limited (St John) has announced today that it will be making an offer to its Shareholders to acquire up to six shares in the Company for every ten shares held, on a pro rata basis, at a price of $1.75 per share.

The offer is conditional on shareholders passing a Special Resolution at a meeting of St John Shareholders scheduled to be held in Auckland on Friday, 15 November 2010.

The terms and conditions of the Buy Back offer will be set out in the Offer Document which is expected to be sent to Shareholders, together with the meeting material, on 22 October 2010.

The offer follows the recent sale of St John's Bunnings property in Manukau, Auckland which has resulted in St John having cash reserves of approximately $17 million. With this announcement the trading halt in place since 30 September 2010 has been lifted.

St John Chairman Kevin Podmore says, "This offer represents an opportunity for St John Shareholders to realise some of the shares they were issued by the Company in July last year when their mortgage bonds were converted to shares. The buy back price of $1.75 is the same price as the conversion ratio used at that time."

"Shares repurchased will not be held by St John but immediately cancelled. That means that if all Shareholders accept in full, there will be no change in the relative holdings and voting rights of Shareholders" said Mr Podmore.

St John also announced today that a dividend payment of six cents per share will be paid in early November 2010. The dividend will be paid to the shareholders on record as at Friday, 22 October 2010.

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