Vertex chairman urges minority investors to sell

Plastic company Vertex's chairman Tony Frankham today urged remaining minority shareholders to sell to majority owner Masthead.

Christchurch businessman Mark Stewart's Masthead Equities has now secured 64 per cent of Vertex in its $2.09 a share bid for control of the company, including the 2 per cent shareholding of managing director Paddy Boyle. Masthead's offer remains open until May 24.

Today Mr Frankham said he and the committee of independent directors reiterated their earlier advice against investors retaining minority holdings in Vertex.

He said the committee did not see any possibility that the Masthead offer price would be increased further or that any other offer for Vertex could be made.

Furthermore, he said there was unlikely to be any material short or medium term improvement in Vertex's share price over the Masthead offer, "and in all likelihood once Masthead's offer closes the share price will fall well below Masthead's offer".

Vertex shares were trading a cent lower at $2.07 by midday today.

- NZPA