Fletcher Building has warned that its shareholders are being targeted with low ball share offers.
The construction company says that Washington Securities Pty Limited is making another unsolicited offer to some holders of the company's shares.
The price being offered by Washington Securities is $5.00 per share which is around 42 per cent less than the opening price of the shares quoted on the NZSX this morning of $8.70 per share.
Fletcher's warning issued today says that it "believes Washington Securities is targeting shareholders who may think it is expensive and difficult to otherwise sell their shares. Shareholders who sell their shares through a share-broker directly will receive the full market price, less any brokerage fees. Different sharebrokers charge different fees, generally between $30 and $75 as a minimum brokerage fee which should be considerably less than the potential loss of accepting the Washington Securities offer. Payment will generally be made by a broker within three business days of sale."
In addition, while Washington Securities promises payment within 30 days of a share transfer being registered, there is no obligation or requirement on Washington Securities to register the shares within any period. Shareholders who accept the offer from Washington Securities should therefore recognise that payment could be delayed up to the maximum 90 day period after the date of the offer.
Shareholders who accept the offer have the right to cancel their acceptance provided they do so in accordance with the terms set out in Washington Securities' offer.