Briggs targets CDL Investments

Professional investor Philip Briggs is behind an unsolicited offer to shareholders of property development company CDL Investments at a 23% discount to net asset backing.

Professional investor Philip Briggs is behind an unsolicited offer to shareholders of property development company CDL Investments at a 23% discount to net asset backing.

CDL, which is involved in land based investment and development, said it has become aware of an offer to its smaller shareholders from Zero Commission NZ Limited to purchase their holdings at 28c-a-share.

CDL chairman Hong Ren Wong said the board has reviewed the offer and notes that CDL’s net asset backing at June 30, 2011 was 36.6c-a-share.

CDL shares, which are tightly held, last traded at 31c, having zigzagged between 30c and 34c in recent months.

The company is 65% owned by Millennium & Copthorne Hotels New Zealand with ACC and Adrian Ho also holding more than 5%.

Zero Commission was formed in September 2010 by Waiheke-based Mr Briggs, a former equities advisor, according to Companies Office records. It has made similar offers to shareholders of King Country Energy, Tenon and New Zealand Oil & Gas over the past 12 months.

Mr Wong said shareholders who received the offer should take professional advice from their lawyer or financial advisor before taking any further steps in response to the offer.

“Shareholders are under no obligation whatsoever to accept the offer or to take any action in respect of it. The offer is not in any way endorsed by the board or CDI," he said.

“Shareholders accepting the offer should be aware that they will be an unsecured creditor of Zero Commission NZ Limited during the period between their shares being transferred to Zero Commission NZ Limited and receiving full payment from Zero Commission NZ Limited.”