Shareholders offered 65% below market value in new offer

Shareholders offered 65% below market value in new low-ball share offer

Vector Chairman Michael Stiassny today expressed concern that Vector shareholders had being targeted by a new low-ball share offer, which would see shareholders sell their shares for 65% below the market value if they accept the offer.

“I would encourage all Vector shareholders considering an unsolicited offer from Australian based company, Stock and Share Trading to seek independent advice and check the share price before coming to a decision. Vector’s share price today is $2.85 and the offer from Stock and Share is $1.00 per share, which means shareholders would be selling their shares at 65% below market value,” he said.

Mr Stiassny said last year over 300 Vector shareholders responded to an unsolicited share offer and sold their shares for well below the market value.

“These shareholders did not receive a fair price for their shares and that is just not good enough,” he said.

Mr Stiassny said he supported calls from other listed companies, for the Financial Markets Authority (FMA) to step in and legislate to stop low-ball offers from being made.

“It is ridiculous that these offers continue. The sooner these are stopped the better for us all,” he said.

Mr Stiassny said the company had received a large number of calls from shareholders who have received letters from Stock and Share Trading and were concerned about the offer, some describing it as a “scam”.

ENDS

© Scoop Media