Take care about latest offer says Perpetual

Take care about latest offer says Perpetual to Strategic Finance investors

Perpetual Trust has again today strongly advised investors to seek independent advice before they make a decision to accept Stock and Share’s latest 5 cent offer for their debenture investments in Strategic Finance (in receivership and in liquidation).

“The Receivers recently provided a report to investors advising that their current estimate of recoveries from Strategic’s assets is gross returns to Strategic’s debenture holders of between 12 cents and 35 cents of the amount that is owed them. An amount of 2 cents in the dollar was paid to debenture holders in September 2010 and the Receivers are working hard to obtain repayment of several of Strategic’s largest loans to enable a further payment to be made as soon as possible” said Matthew Lancaster, Head of Perpetual Corporate Trust.

“While Stock and Share’s offer may hold some appeal to investors who are seeking funds prior to Christmas, we remain confident that a much better payment is coming their way. We also continue to caution anyone considering this bid to carefully check that the terms of Stock and Share’s offer guarantee immediate payment.”

The Securities Commission has previously warned investors about unsolicited offers of this nature. In an article on the Commission’s website it says that although it is not illegal to make an unsolicited offer to buy someone's investments, and even 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 explains that inexperienced or elderly investors, or those under immediate financial pressure, are most at risk of signing away their investments without carefully reading the offer and taking the time to make a few important checks.

“We strongly recommend that any investor seek independent advice from a reputable financial adviser,” concluded Mr Lancaster.

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