Regulator warns on low-ball Strategic Finance offer
The Securities Commission has made yet another warning over a low-ball offer to investors in a failed finance company.
The Securities Commission has made yet another warning over a low-ball offer to investors in a failed finance company.
It is warning all debenture-holders in Strategic Finance to be wary of another offer by Stock & Share Trading Company to buy their debentures for five cents in the dollar.
Earlier this year the commission issued two warnings about similar offers made by Australian-based Stock & Share Trading Company for debentures issued by Strategic Finance and St Laurence Finance Limited.
While it is not illegal to make an unsolicited offer to buy investments or to offer to buy them at a price below their current market value, it is against the law to mislead or deceive investors into accepting an offer.
The commission reminds investors to be cautious of any unsolicited offer to purchase their investments, especially where the offer is well below face value and seek independent, professional advice before making a decision to accept any offer.
When a finance company is in receivership it is very difficult to accurately assess the value of the company’s debentures.
The debentures are not trading on any organised market, so there is no market price against which investors can assess the offer, the commission said.
Niko Kloeten
Mon, 15 Nov 2010
Mon, 15 Nov 2010
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Regulator warns on low-ball Strategic Finance offer
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