Commission warns against unsolicited St Laurence offer

The Securities Commission is warning debenture holders in St Laurence Finance to be wary of an unsolicited offer to buy their debentures at 8c in the dollar.

Receivers were appointed to St Laurence last month. About 9000 investors are owed $245 million.

The commission said debenture holders should seek professional advice before making a decision about the offer from Stock and Share Trading Company.

It was very difficult to accurately assess the value of the debentures when there was no market price to compare the offer against.

"Such an offer does not mean that 8c in the dollar is the true value of the securities," commission chairwoman Jane Diplock said.

"Offers sometimes try to exploit doubts about the value of debentures, so it's important that investors get advice from a reputable financial adviser before coming to a decision."

It is not illegal to offer to buy securities below their face value, but such offers must not be misleading or deceptive.