Property fund DNZ which listed on the NZX last week has referred formerly banned company director Terence Whimp’s trade of millions of its shares under value to the Securities Commission.
Through his limited partnership company Carrington Securities LP, Mr Whimp who was banned as a director for four years from 2006 acquired 2.2 million DNZ Property Fund shares from smaller shareholders at 60c a share.
The 60c a share offer was below the 90c that shares were trading on the Unlisted market and the indicative 80c to $1.05 price range DNZ’s offer document outlined in July. Since DNZ listed on August 16, its shares are now $1.02.
“These kinds of offers are designed to take advantage of unsophisticated and vulnerable investors,” DNZ chairman Tim Storey said.
“It is of considerable concern that there is nothing that can be done to stop this type of unethical and predatory activity.”
DNZ has referred the matter to the Securities Commission and NZX.