The Takeovers Panel yesterday threw out a complaint from Kiwi Income Property Trust (KIPT) alleging defensive tactics against Capital Properties New Zealand.
The dispute centres on Capital Properties' decision to sell management rights for its $500 million portfolio last November. This move came a week after KIPT paid $53.4 million for 19.9 per cent of Capital. KIPT said this was designed to protect Capital from a takeover and breached the Takeovers Code. But the Takeovers Panel said - based on the information available - it would take no action.
Angus McNaughton, chief executive of Kiwi Income Properties, which manages KIPT, said he would review the decision before deciding any response. "There are a number of avenues we are exploring."
Capital's chief executive, Chris Gudgeon, denied Capital had acted defensively and questioned Kiwi Income Properties' motives.
"This action looks like the external manager of KIPT seeking to prevent Capital Property shareholders from realising the full value of their valuable management rights in an open, contestable process," he said.
As for the management rights, Capital has received a "high level" of interest from New Zealand, Australia, the US and Europe.
Kiwi complaint thrown out
AdvertisementAdvertise with NZME.
