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Bernard Whimp targets DNZ investors again

DNZ chairman Tim Storey has hit out at Bernard Whimp after he targeted DNZ investors with another unsolicited “low-ball” offer to buy their shares through his limited partnership Energy Securities.

Last August he successfully bought 2.2 million DNZ Property Fund shares at 60c shares of DNZ Property Fund. Those shares most recently traded at $1.22.

The share price being offered by Mr Whimp is $1.65, however, if accepted this will not be paid in one lump sum at the time of purchase.

Instead, shareholders will be paid in equal instalments over a 10-year period. Also, all future dividends are foregone by the selling shareholder during that 10 year period.

And DNZ has warned shareholders that over the 10 year period, there can be no certainty that the instalments will in fact be paid.

Mr Storey said, “The 10 year payment period means that the actual real value being received by shareholders who accept the offer is significantly less than the face value of the Whimp-associated offer and also to the current market price for DNZ shares.

“I strongly recommend that the DNZ shareholders who have been approached seek independent financial advice prior to responding to this offer from Energy Securities LP.

Mr Storey said he was “astounded” that DNZ shareholders are again being targeted by Mr Whimp.

“The headline offer price is clearly preying on less sophisticated investors who may not see the 10 year payment period in the fine print of the offer, or understand its affect on the actual price of the offer.

"While this offer is predatory, and we believe misleading to shareholders, it does seem the offer is most likely ineffective as it incorrectly states the name of the company.”

DNZ has referred the matter to the Securities Commission and is seeking legal advice as to the implications of the offer. 

Parliament is looking at a law change to target low-ball share offers from the likes of Mr Whimp.

Comments and questions

This fraudster needs locked up - forget the technicality around his ban from running a "company" he is certainly operating under the guise of being in business regardless of the entity. Come on SecComm shut this down.

Whimp is not even that, he is an unglorified opportunist who clearly gets a kick out of taking unsuspecting investors down.
Not the first and will not be the last.

These Guys deal on investors ignorance and stupidity.

Whimp is not even that, he is an unglorified opportunist who clearly gets a kick out of taking unsuspecting investors down.
Not the first and will not be the last.

These Guys deal on investors ignorance and stupidity.

Whimp - us just that - a whimp.
Go and earn some respectful money elsewhere.

If shareholders can't work out that the value of their stock is higher on the NZX than what this guy is offering, one has to ask, should they really be investing??

I received the letter from Mr Whimp...its worded pretty well, Without looking for the catch its pretty hard to find... with what many have gone through in the Canterbury region recently having people like Whimp intentionally trying to scam people is just wrong. He lives in ChCh and I am looking forward to tracking him down to give my response personally..Does anyone have his contact details...

Should the proper Authority monitor this culprit and his agent, or is this part of the NZX game?

I am all for Whimp. He is a totally legitimate and vital partcipant in the market. His role is to replace irrational investors( ie. those not driven by profit ) with rational ones ( those that are driven by profit), namely himself, yourself and me - unless, that is, you are planning to accept the offer.

I received Whimp's letter but I sold my DNZ shares 6 months ago. It looks like he's using an out-dated shareholders register.

Anonymous. Spare me!! Many elderly have been taken for a ride. Have been in family court to save my father-in-law from getting stolen from and ripped off. When does it stop? Paper's received in mail look genuine to elderly. They just fill out and return. Have no idea that this isn't genuine. NZ not like it used to be. Just talk to police. They will tell you. Today there are so many rip offs.

Whimp is also targeting TrustPower shares with an offer of $9.20 a share & the same 10 year payment spread. It's an absolute disgrace that he can get away with this type of offer. When will the law protect us?

It is time for action - The man is a crook and it is amazing that he is allowed to continue, especially as not doubt his offer is worded in such a way that the people targeted will have no idea as to what it is all about.

It is appalling that the NZ Herald Editorial commenting at his last attempt used an inverted caveat emptor as a justification for what is such a dishonest offer and actually supported his right to make the offer.

Maybe the said Editor may like to explain!!

Time for the Minister of justice to step in

Duncan Hamilton

He is again targeting Vector shareholders with the same 10 year offer at $3.20 per share.

Those victims who sold their shares(most of these shares are left in their legacy), to this culprit, should start educating themselves....

This wimp guy is a MongrelDog.

It is not the uneducated who are scammed by him it is the elderly or the ill. It is totally immoral what he does, and it isn't even an original idea it has been done in Australia before.

These offers are made to look like official documents and every effort is made to make it confusing for people to understand.

Just think of the widows who struggle to balance a cheque book and are expected to see the con going on in these offers, how whimp can claim that there is "Meeting of the minds" I have no idea.