DNZ Property Fund shares placed on trading halt

DNZ Property Fund said its shares, which trade in the alternative Unlisted market, have been placed on a trading halt until after the special shareholder meeting on May 12.

The board said the trading halt was prudent and it would continue until the results of the meeting were available.

The meeting is at 10am on Wednesday. The company's board has fronted investors at road shows around the country ahead of the meeting.

Investors expressed anger about a number of issues at the road shows.

The directors argue that the current share price on the unlisted market is too large a discount to the company's asset backing and the company needs to restructure to be more attractive to a wider range of investors and list on the New Zealand sharemarket. It also needs to raise capital to reduce debt.

Investors are angry at the cost of buying out the managers and there are divisions in the shareholder base on corporate governance and other issues.

The board outlined five options at roadshows but these are not being voted on at the meeting. The meeting will vote on a no confidence motion and elect board members.

The company said last month that the value of its property portfolio has fallen 3.4 per cent to $700 million as at March 31.

- NZPA