DNZ in ‘constructive’ talks with MMG
MMG Advisory Partners has commended DNZ Property Fund for withdrawing its initial public offering and the two parties are now in talks to better represent shareholders' interests.
MMG has many clients who have funds invested in DNZ and stood to lose the value of their investments, so MMG strongly opposed DNZ’s plans. It also opposed DNZ's chief executive and soon to be retired director's $43 million management contract termination fee.
But today MMG told NBR that the talks are “constructive” and it commends DNZ’s decision to withdraw its initial public offering proposal.
“We agree with their view that there is a need to engage further with DNZ shareholders and stakeholders,” MMG Advisory Partners chief executive Derek Young said.
Just yesterday he told NBR that MMG had sought to engage with DNZ on developing its capital management strategy but the property investment company hadn’t responded.
No further details of DNZ’s immediate plans have been released yet as negotiations between its own board members and with MMG continue.
Property company DNZ has pulled its initial public offering of $130 million, blaming the media for confusing shareholders about the merits of its capital raising.
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Comments
MMG
The translation of this press release should anyone need it is We have been caught red handed trying to scam the investors so now we need to get back to the drawing board and think of a Plan B that will dress the pig up in lipstick so the punters wont notice
or could be a different message
An alternative translation could be that it is hard to raise needed capital when it means diluting existing shareholders and raising capital at lower than book values.
Doug Somers
Duffy and Alastair actually bought out Dougs stake in the management company with money that was borrowed.
A lot of the actual cash paid out in the 43 million would have been going straight to the bank to repay this debt.
MMG are just pissed that had DNZ listed, they would not be able to charge investors a fee anymore because investors can buy and sell stock on the exchange direct.
MMG are in trouble because who in their right mind would invest with them considering all the deals they recommended are frozen. Even though they rebranded, its still the same financial advisors around the country who took our money.
So in some regards you could also say MMG are pigs dressed up in lipstick.
I certainly hold the lot of them to account. None of them gives a sh1t about us anymore.
The Last Stanza
Sad to say it, the value of the unit holders is reducing on a daily basis. The way the market has played out; which was predictable, indicates alot of the properties are over rented or being vacanted as we speak. Somers-Edgar would have seen this coming; obviously before Duffy & Hasells, and sold out at the top of the market.
The best thing that could happen for unit holders is receivership. This would provide independence on value levels, possibly identify reckless trading and provide a more measured approach to the way forward.
Because they are so many related parties with a vested interest in bleeding more fees; and I dont mean unit holders, I doubt receivership will happen. Another moratorium, just like the finance companies fiasco.
People should have remembered the Waltus syndication concocted by the Hodges, that turned into Urbus. Its the same old story; complete misery for the unit holders. What out next time; and dont say I didnt tell you.
media
The whole fiasco simply highlights that the real criminals in this country are white collar workers who hide behide fancy titles to make decisions that simply feather their nests at the cost of honest, hardworking Kiwis. Shame on the law for allowing it.
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