The sharemarket will get a new listing in August after shareholders at DNZ Property Fund's annual meeting voted in favour of a plan to raise capital by an offer to existing shareholders.
Shareholders were yesterday asked to vote on a resolution for a cap
The sharemarket will get a new listing in August after shareholders at DNZ Property Fund's annual meeting voted in favour of a plan to raise capital by an offer to existing shareholders.
Shareholders were yesterday asked to vote on a resolution for a capital raising of up to $35 million, and any additional shares offered at the discretion of the board of up to $10 million.
The resolution passed with a vote of 98% in favour. The capital raising is expected to go ahead immediately.
The company hopes to list on NZSX by the middle of August after the capital raising.
"It is a good outcome for shareholders and a good outcome for the market," said chairman Tim Storey. He said the vote in favour was overwhelming.
Following investor meetings around the country the company internalises its management and on July 1. The company has had to deal with factions among its shareholders but said the decision to internalise the manager was a unanimous board vote.
The notice of meeting said the funds raised from the capital raising, along with an ongoing controlled asset sale programme, will reduce the company's debt levels to a more acceptable low to mid 40 percent range.
"With the decision to internalise the manager, adopt the new constitution and make application to list on the NZSX, your board considers that the company will have one of the most attractive governance structures amongst the listed property vehicles on the NZSX," the company said in the notice of meeting.
The annual meeting was in Auckland. Shareholders also voted in favour of a resolution for the fees and expenses of the auditor.
