South Canterbury Finance warns on low offers

South Canterbury Finance is warning investors to take professional advice before considering any offers to buy their securities at prices heavily discounted below those on the NZX trading platform.

The finance company said today's advice came after it was approached with requests for access to the registers of holders of one tranche of South Canterbury bonds and its perpetual preference shares.

South Canterbury said it had complied with the law and provided copies of the registers.

"The company considers that these requests may be a preliminary step taken ahead of an offer to investors and has, therefore, informed the Securities Commission," South Canterbury said.

South Canterbury Finance chief executive Sandy Maier said both Australia and Britain offered investors a degree of protection from predatory offers.

In New Zealand the Ministry of Economic Development had published a discussion paper seeking views on the protection that should be offered to security holders in similar circumstances.

Maier said South Canterbury Finance had "achieved significant progress in restoring the business to a sustainable platform".

"The willingness of debenture investors to take advantage of our offer to extend maturity dates is a clear demonstration of the depth of the support for the company," he said.

"The focus of the directors and management is firmly on the turnaround and introduction of new equity into the business."

- NZ HERALD