Securities Commission bids to stop Whimp share transfer

Bernard Whimp. Photo / Supplied

The Securities Commission has applied for a court order to prevent partnerships associated with Bernard Whimp from transferring shares from investors who accepted his low-ball offers for shares in several major listed public companies.

"We have applied for urgent interim injunctions to restrain those partnerships from transferring shares in response to any of the offers, where people have accepted them," the commission's communications manager, Roger Marwick, said.

Whimp was given until midday yesterday to confirm to the commission that he had taken action to send out corrective statements to the shareholders he had approached, but no such confirmation was received, Marwick said.

The original offers appeared at first sight to be made at above the market value of the shares, but under the fine print the full payment would not be made for 10 years; and the net present value of the offer was therefore much less than the nominal offer price. Under securities law, an offerer must not engage in misleading or deceptive conduct.

Whimp faces a fine of up to $30,000 for each offence if he fails to comply with the commission's latest orders, which were made in respect of offers made on or around March 15 to 18 for shares in TrustPower, Vector, Guinness Peat Group, Contact Energy, DNZ Property and Fletcher Building.

On March 16, The Warehouse Group and Abano Healthcare said they had alerted shareholders about possible unsolicited offers to buy their shares after receiving requests from Whimp for copies of their share registers.

According to Companies Office records, Whimp was convicted under the Companies Act for failure to comply with a notice issued by the liquidator and for removal of records, and under the Crimes Act for burglary. He was sentenced in April 2007 to 250 hours community service.