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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