Commission warns against DNZ offer

The Securities Commission is warning shareholders in the DNZ Property Fund Limited to be wary of an offer to purchase debentures by Carrington Securities LP for 60c per share.

The commission says investors to be cautious of any unsolicited offer to purchase their investments and urges investors to seek professional advice before accepting an offer.

As the shares are not currently trading on any organised market, there is no market price against which investors can assess the offer and accordingly, it is very difficult to accurately assess the value of the company's debentures, the commission says.

Shareholders should consider, together with other relevant factors, the indicative price range of $0.80 to $1.05 per shares which is set out in DNZ Property Fund Limited's prospectus.

Under securities legislation it is not illegal to offer to buy securities below their face value.

However any offer to buy securities from investors must not be misleading or deceptive.

- NZ HERALD