Free audio stream, including stories that are padlocked on our site. Listen on any device, anywhere. Updated twice daily. The audio stream takes several seconds to start on Android devices.Launch Radio player
NZX, the stock market operator, says it won't cancel trades in Lyttelton Port Co [NZX: LPC] shares made after the release of a substantial security holder (SSH) notice that included first news of a takeover proposal for the company.
Port Otago sent an SSH notice to the NZX last Friday afternoon that announced it had entered a lock-up agreement for its holding of about 15.5 percent with majority owner Christchurch City Holdings (CCH), which intended to make a full takeover of the listed Lyttleton Port at $3.95 a share. Port Otago gave Lyttleton no advance notice of the plan, which included a special dividend of 20 cents.
Investors who saw the notice drove the price up 24 percent to $4.10, leaving some shareholders disgruntled that they had been blindsided and demanding the trades be reversed. The stock was subsequently halted for the release of statement from CCH about the plan.
About 42,534 shares changed hands in 13 trades ranging from $3.30 to $3.59 between the SSH being released at 2.24pm and the stock being halted at 2.57pm, for a total value of less than $150,000. Lyttelton Port has 102 million shares on issue, although more than 90 percent is held by CCH and Port Otago. The shares traded recently at $4.10, valuing the company at $419 million.
"NZX is confident that all market participants, traders and investors, both on the buy and sell sides, had access to the same information at the same time in relation to the proposed takeover," the market operator said in statement, as part of its review of Friday's events.
Because Lyttelton Port had no prior knowledge of the proposal it didn't breach any disclosure rules, while CCH and Port Otago are not listed companies required to disclose anything beyond their SSH filings, NZX said. It described Lyttelton's lack of prior knowledge as "unusual" but doesn't consider there has been a breach of its rules for market participants.
Still, the stock market operator said it is reviewing its process for the release of SSH notices.
This article is tagged with the following keywords. Find out more about MyNBR Tags
- 'I guess I'm back to piracy' — Auckland man as HBO NOW follows through on cut-off threat
- Crying wolf as climate change takes a ‘hiatus’
- Judith Collins backs 'great leader' Helen Clark for top UN job
- Rodney Hide is wrong on climate change
- The Moxie Sessions: Will the last person out of Ohura please turn out the lights (but for the love of God don’t unplug the navigation beacon)