New valuation rewards shareholders

A third and final shock valuation of Shotover Jet's shares has vindicated minority shareholders who held out for a better price.

A Takeovers Panel-appointed expert has valued the shares at 118.1c, well above Ngai Tahu Holdings Corporation's (NTHC) top offer of 103c a share - deemed fair and reasonable by two previous valuations.

The new valuation - which is binding to all parties - will affect a minimum of 3.69 million Shotover shares, costing NTHC at least $553,500.

But a further 1.187 million shares could also be affected, tacking another $178,149 on to NTHC's bill.

NTHC now owns 100 per cent of the South Island tourism operator after a drawn-out takeover fight.

The new price ends a battle of wills between a posse of small shareholders who believed NTHC's best price fell short of reflecting the real value of Shotover's shares.

NTHC chief executive Robin Pratt said yesterday that the corporation was "very" surprised by the final price, which was well outside the fair and reasonable range of both previous valuations.

Pratt said it was worth noting the third valuer adopted a different approach.

"This is a shining example of the art, as opposed to the science, of valuation," he said. "It would be constructive in the future for the panel to provide substantive guidance for the third valuation to prevent such widely differing estimates of value."

The 118c price did not surprise Tauranga investor Lloyd Christie, who has long said his shares were worth at least 120c.

"I believe they are worth every cent of that," he said. "I'm very pleased that the valuer has recognised the fair value of the shares. I can't say I'm surprised because I believe it's at the lower end of the [fair] value, but in the circumstances I would have to say it is fair and reasonable."

Christie said the new valuation - which means he will bank an extra $52,000 - rightly reflected Shotover's 25-year exclusive rights to the Shotover River.

It also recognised Shotover's reinvestment history and its three acquisitions in the past 18 months.

Christie - who was first offered 48c off-market for his shares - said the better price was an example of the stock market working as it should, to protect smaller investors.

"They stopped a number of small shareholders being monstered by a larger corporate."

- NZPA