DNZ loses challenge to Argosy's $20 million exit plan
DNZ Property Fund today failed in a last-ditch court bid to force a unit-holders meeting ahead of Argosy Property Management's forthcoming annual general meeting.
DNZ Property Fund today failed in a last-ditch court bid to force a unit-holders meeting ahead of Argosy Property Management’s forthcoming annual general meeting.
The AGM – delayed from early August because of court action - is expected to go ahead late in August or in the first week of September.
DNZ wanted a meeting to consider various resolutions relating to its effective desire to takeover Argosy with the two vehicles merging.
Argosy refused to hold a meeting so DNZ took them to court.
In an Auckland High Court decision released this afternoon Justice Raynor Asher said there was no breach of the trust deed or statutory duty.
He said the case was an assessment of whether the proposed actions of Argosy amounted to a breach of trust, or a breach of the Unit Trusts Act.
DNZ would be able to put existing proposed resolutions and any other resolutions it wished to put at the AGM, Justice Asher said.
He said DNZ could vigorously pursue its alternative proposal but there was nothing to show the independent directors and Guardian Trust acted in breach of their duties in refusing to respond to the requisition by calling a meting immediately.
The courtroom wrangle involved property investment heavy-hitters.
Argosy Trust, listed in 2002, is the third largest NZX listed property trust by market capitalization, with a $961 million property portfolio.
Argosy Property Management (Argosy) manages the trust and is wholly-owned by OnePath (NZ), a subsidiary of ANZ National.
DNZ Property Fund is a listed portfolio investment company, and unit holder, which owns .9% of the units in Argosy Trust.
DNZ effectively objected to a plan “internalize” the management of Argosy.
There was a haggle over a proposal to pay Argosy $32.5 million to give up its management arrangement. That proposed payment was later reduced to $20 million.
The management internalisation and $20 million payment to Argosy Property Management is to be put at unit holders at the AGM.
Jock Anderson
Fri, 29 Jul 2011
Fri, 29 Jul 2011
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DNZ loses challenge to Argosy's $20 million exit plan
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