The Securities Commission is warning Strategic Finance investors to be "wary" of a 5c in the dollar offer for their debentures in the collapsed finance company.Australian company Stock and Share Trading Company Pty Ltd initially offered investor
The Securities Commission is warning Strategic Finance investors to be "wary" of a 5c in the dollar offer for their debentures in the collapsed finance company.
Australian company Stock and Share Trading Company Pty Ltd initially offered investors 20c in the dollar but has since come back with the much lower 5c.
The same company has also attempted to entice St Laurence debenture holders with an 8c in the dollar deal, having initially offered 20c.
The Securities Commission urges investors to seek professional advice before making any decision to accept the offer.
Prior to Strategic Finance entering receivership in March, the commission warned investors of another unsolicited offer from Marchmont Securities.
“When a finance company is in receivership it is very difficult to accurately assess the value of the company’s debentures,” the commission said in a statement.
“The debentures are not trading on any organised market, so there is no market price against which investors can assess the offer.
“Under securities legislation it is not illegal to offer to buy securities below their face value. Any offer to buy securities from investors must not be misleading or deceptive.”
Strategic Finance was placed in the hands of receivers PricewaterhouseCoopers, after missing a milestone debt repayment under its moratorium plan.
About 13,000 investors are owed $417 million.
