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Warning: Unsolicited Offer St Laurence Debentures
News release
6 May 2010
Warning: Unsolicited Offer for
St Laurence Finance
Debentures
Debenture-holders in St Laurence
Finance Limited should be wary of an offer by Stock and
Share Trading Company Pty Ltd to buy their debentures for 8c
in the dollar.
The Securities Commission urges investors to seek professional advice before making a decision about the offer.
It is very difficult to accurately assess the value of a finance company’s debentures when it is in moratorium or receivership. As these debentures are not trading on any organised market there is no market price for investors to compare the offer against.
They should be especially wary when an unsolicited offer is for well below face-value.
“Such an offer does not mean that 8c in the dollar is the true value of the securities,” Commission Chairman Jane Diplock says. “Offers sometimes try to exploit doubts about the value of debentures, so it’s important that investors get advice from a reputable financial adviser before coming to a decision.”
It is not illegal to offer to buy securities below their face value, but such offers must not be misleading or deceptive.
ENDS
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