TrustPower low-ball share offer warning

Christchurch businessman Bernard Whimp. Photo / ONE NEWS

A TrustPower investor is warning other shareholders to beware of an unsolicited offer with a twist.

Auckland man Brett Hart said he received a letter today from Bernard Whimp-linked Carrington Securities LP offering him $9.20 for his TrustPower shares, above yesterday's closing price of $7.17 which the letter refers to.

However, the terms of the offer state shareholders will be paid over 10 years, at 92c a year, Hart said.

"It's very cheeky. I just think alot of people may think this is very good."

Under the terms of the offer - which closes on March 24 - dividends would go to Carrington Securities. Trustpower pays dividends typically around 40c a year, said Hart.

Last year Carrington Securities purchased 2.2 million shares through a low-ball offer to investors in DNZ Property Fund.

Whimp was involved in a similar scheme last Christmas when he offered below market prices to shareholders in a range of top companies, including TrustPower, prompting a review of rules covering low ball offers.

Hart said the letter bore a striking resemblence to the one he received last Christmas, with the same office and postal address. It says Carrington is seeking one million shares on a first come, first served basis.

A Trustpower spokesman said he had not heard of the offer.