Whimp nets $343,000 from Vector shareholders

More than 300 Vector shareholders sold into Bernard Whimp’s post Christmas low- ball offer at a 34% discount – trades that chairman Michael Stiassny describes as absolutely galling.

Some 373,209 Vector shares were sold to Mr Whimp’s Energy Securities at $1.56 a share.

At close of trading on the day of the offer (December 29), Vector's shares were trading at $2.36 so Mr Whimp's offer represented a discount of 34% to that price. 

Were he to turn around and sell the shares at today’s price of $2.48, he’d make a cool $343,352.

Mr Stiassny expressed his concern that these shareholders unwittingly sold their shares at a rate below market value. 

"These share holders did not receive a fair price for their shares and that absolutely galls me.

"While I fully respect the right of individuals to make their own investment decisions, the Vector board is concerned at the style in which the share offer was undertaken by Energy Securities," Mr Stiassny said.

Mr Whimp was also behind several other offers to shareholders of other NZX-listed firms, including Nuplex, F&P Appliances, Fletcher Building, Contact Energy, GPG and Telecom.

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 $1.20.

Mr Whimp uses limited partnerships to make his offers, having been banned from being a company director for four years in October 2006.

In 2003, his contributory mortgage business, General Mortgages, was placed under statutory management by the Securities Commission.

Mr Stiassny said he understood the Securities Commission is considering what actions it needs to take to ensure that investors have confidence in the NZ capital markets. 

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Ethical earnings & honest guy eh!

Wonder how this vulture sleeps at night?


Probably just like most accountants and lawyers!


I'd say so. I bet, a filthy lawyer had a hand in his scheme.


He is the same as Hotchin and Watson - He did not break any rules just took money from the old and stupid.
More protection from door to door sales than this guy - good old corrupt NZ.
And they wonder why more and more invest in the ASX?


This guys name really sums him up... what kind of man needs to take advantage of the vulnerable investors. Probably justifies it to himself he is providing a liquidity event. People like this always get there comeupance... what a wally, what a whimp!


Don't forget about the vermin lawyers, who helped devise the wording of the offer.


Whimp needs a thump


Even if there were rules to control this, the Secs Comm would have done a lot of posturing, but nothing would have changed, just like with the finance companies. Astonishing though that 300 people have so little common sense.


The price of Vector was in the newspapers pretty much every day over the period. There were repeated warnings on the news.

These people had already bought shares so they new the process.


Fools and their money are so easily parted...


A great businessman whimp is. This is a legal and great way to make money. Do people get upset when I make low ball offers for property?? People can either accept or decline an offer made for their assett/s.
I hope more entrepernuers like bernard come more into force in NZ.


S.Morgan - Good boy. I agree, why is everyone so damn stupid and jealous because someone makes money?


On transparency.net.nz there is a post entitled Is New Zealand a soft touch for corruption? it shows that Mr Whimp has been at this since at least 2004 when millions of dollars were lost when will this end how many people need to have their lives destroyed before the government steps in .. we have too many loopholes that people can abuse because NZ believes everything that is done is done with honest intent.. wake up NZ times have changed.


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