Three fighting factions will front up to DNZ Property Group's shareholders in the next fortnight.
DNZ's existing board, representatives of MMG Advisory Partners and the Money Managers Action Group are at war over the future direction of the business. Their representatives plan to address shareholders at a national series of
investor briefings.
DNZ, which manages properties valued at $800 million, has just written to its 8000 shareholders, telling them of the 11-meeting national roadshow.
The meetings, which start in Invercargill on Monday and finish in Auckland on May 4, will pave the way for a vote at a special general meeting in Auckland on May 12 when two new directors will be elected.
At stake is one of the largest unlisted real estate conglomerates in New Zealand which grew out of an original 32 syndicates formed by Money Managers, later becoming Dominion Funds then DNZ.
Tim Storey, DNZ's chairman, wrote to shareholders saying how negotiations with MMG failed to result in an agreement, and explaining that the action group wanted to get on the board, saying that its members - Peter Bruce and Peter Fletcher - were standing for election.
But David van Schaardenburg and Derek Young representing MMG's interests also want those two seats and van Schaardenburg said he planned to attend the meetings.
Storey said the key issues facing DNZ were uncertain future dividends, lack of trading on Unlisted, a low share price, high debt levels and a bad corporate governance legacy which limited shareholder rights.
MMG's actions last year were a leading factor in DNZ withdrawing its November offer, Storey said.
That was a plan to list the business on NZX, raise $130 million capital and internalise management by paying two founders $43 million cash.
"Since that withdrawal the board has been in discussions with MMG to try to agree a way forward that works for all parties.
"This has included ... engaging an additional independent valuer, Deloitte, to provide another valuation of the management contract and requesting PricewaterhouseCoopers to further review the options available to DNZ.
"Waiting for those reports meant the board delayed the shareholder meeting, with the agreement of MMG, to elect new directors and consider other resolutions.
"Our expectation was that an agreed position would be found for your consideration," he wrote. But the negotiations failed.
* An earlier version of this article said Deloitte had revised down its valuation for internalising the main DNZ management contract and removing the B shares from around $50 million to $26 million. This was not correct as Deloitte has not revised its valuation and stands by the $50 million value.
DNZ Meetings:
* Invercargill: Ascot Park Hotel, Monday, April 26, 5pm.
* Dunedin: Cargills Hotel, Tuesday, April 27, 9am.
* Christchurch: Millennium, Cathedral Square, Tuesday, April 27, 3pm.
* Nelson: Rutherford Hotel, Wednesday, April 28, 10am.
* Wellington: Westpac Stadium, Wednesday, April 28, 3.30pm.
* Palmerston North: Convention Centre, Thursday, April 29 10am.
* Napier/Hastings: Taradale Town Hall, Thursday, April 29, 4pm.
* Whangarei: Kingsgate Hotel, Friday, April 30, 10am.
* Hamilton: Te Rapa Racecourse, Monday, May 3, 10am.
* Tauranga: Bureta Park Motor Inn, Monday, May 3, 3pm.
* Auckland: Ellerslie Racecourse, Tuesday, May 4, 10am.
DNZ chairman Tim Storey. Photo / Brett Phibbs
Three fighting factions will front up to DNZ Property Group's shareholders in the next fortnight.
DNZ's existing board, representatives of MMG Advisory Partners and the Money Managers Action Group are at war over the future direction of the business. Their representatives plan to address shareholders at a national series of
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