Springford's CHH shares go to Hart

Peter Springford

Carter Holt Harvey chief executive Peter Springford and his family yesterday disclosed they had sold their shares into billionaire Graeme Hart's $3.3 billion takeover offer for the forest giant.

The trades, worth more than $180,000, were disclosed as Hart filed a substantial security notice that showed investors holding 82.6 per cent of the shares had accepted his $2.50 a share bid. This was a marginal increase on the previously disclosed 81.4 per cent.

Springford said he and his family had sold because trading volumes might dry up after the offer closed, due at the end of this week.

Low trading volume may lead to unpredictable swings in prices and make it difficult for investors to buy and sell at their preferred prices.

Springford said, "The greater the number of shares Rank [Hart's private company] holds, the less the liquidity for the company's other shareholders."

Hart, who needs to reach 90 per cent in order to compulsorily acquire all minority shareholdings and delist the company, has extended the offer three times since September. Under takeover rules, the offer can be extended for a total of 150 days - until early February.

CHH shares closed unchanged at $2.49.

The company was last week removed from the global benchmark index, the MSCI, and its weighting in the stock exchange's top 50 index also fell sharply - forcing funds who track their portfolios against index weightings to sell.

Springford said: "It is an uncertain time at the moment. I think people are waiting to see what is in front of them. It is still a little early to know what is going to happen. [Rank] has not been fully engaged with us yet."

- additional reporting NZPA