Hellaby encourages small shareholder consolidation

Hellaby encourages small shareholder consolidation

By Paul McBeth

March 7 (BusinessDesk) – Hellaby Holdings, the diversified investment company, will help aggregate small shareholder parcels that make up 4.1% of its ownership.

The Auckland-based company will pay brokerage and registry costs in a small shareholder plan open to local investors with 2,000 shares or fewer to cut administrative costs. That accounts for about 60% of the company’s shareholders who collectively hold some 3 million shares.

“The plan will enable the company to lower shareholder servicing costs where they are disproportionately high relative to the level of investment,” chief executive John Williamson said in a statement.

Hellaby doubled its first-half profit on the back of a successful restructure, and has focused on reining in costs as the country’s economic recovery has struggled to take hold. The shares rose 1% to $2.12 in trading today, and have gained 2.4% this year.

Investors will be able to buy $1,000 or $2,000 lots of shares, sell all of their stock, or keep their existing holding. The consideration paid under the plan will be determined by broker Forsyth Barr Ltd. at an average on-market price over the scheme’s timetable, which opens today and closes on April 7.

Hellaby will force shareholders with less than the minimum holding to sell on June 14 as part of the plan. If shareholders don’t participate, they’ll have to pay their brokerage and registry costs on a compulsory sale. The minimum holding will be either 100 shares if the company’s stock is more than $2 a share on June 14, or 200 shares if it’s less than $2.

(BusinessDesk)

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