By PAM GRAHAM
Freightways' private equity shareholder ABN Amro Capital has sold part of its stake, five months after it promised to hold the shares for a year.
A letter at the front of the Freightways prospectus registered last August said, "The foundation shareholders will retain their significant shareholdings for at least
12 months following completion of the offer". The promise had an escape clause. A sentence on page 91 said the foundation shareholder could sell with the consent of lead managers ABN Amro Rothschilds and First NZ Capital.
On Friday it did just that, notifying the sale of 15.66 million of its 23.49 million shares at $2.15 a share to institutional and individual investors. Michael Taranto, of ABN Amro Capital, said the release clause was standard and the selldown removed an uncertainty about future ownership. Taranto continues to be a director of Freightways.
Professional investors said ABN Amro Capital was never expected to stay in long term and the float has been a winner for all shareholders as the stock has risen from its $1.60 issue price to $2.21.
Taranto said the main reason his company sold was that the share price had appreciated to an extent that the joint managers were prepared to release it from the escrow.
"I don't know whether morals come into it. The agreement says we can sell with their consent.
"It's an excellent company and we continue to hold shares."
First NZ Capital managing director Rob Hamilton said the decision to release was against a backdrop of the increase in share price and after a strong interim result.
The lead managers that released the vendor, or companies related to them, got the brokerage on the share placement. Freightways was not involved in the decision to sell.
