Trans Tasman offers to buy out old foe's stake

Listed developer Trans Tasman Properties has offered its most outspoken critic a $15.2 million land and share deal that would end his involvement with the company.

After protracted courtroom dramas between the company and disenchanted minority shareholder John Powell of Latimer Holdings, Trans Tasman has offered to buy a large block of his land and all his shares.

Trans Tasman executive chairman Don Fletcher said the first part of the deal involved the company entering a conditional agreement to pay $9.52 million for Powell's 27.2ha of land on Johns Rd at Belfast, opposite Trans Tasman's Clearwater Resort.

The block of land could take up to 250 houses, was on the edge of the city and provided for the natural expansion of Christchurch.

That deal was conditional on the Overseas Investment Commission granting the Asian-owned developer permission, Fletcher said.

In the second part of the deal, Trans Tasman has offered $5,729,227 for Powell's 14,323,068 shares, paying 40c for the shares which are trading at 42c to 43c.

If all goes according to plan, Powell will no longer have a stake in the company.

Two years ago, Powell rallied shareholders for a court battle to challenge the company's management, ownership, structure and performance.

Powell and Latimer went to the High Court at Auckland against SEA Holdings NZ, which has a controlling stake in Trans Tasman.

They held 2.9 per cent of the company, but had support from 1300 other shareholders with 6 per cent. They wanted SEA to buy their shares and complained that SEA and its subsidiaries had derived a substantial income from Trans Tasman and were likely to continue to do so. Powell lost that case.

In a separate court action around the same time, Trans Tasman settled a defamation action against Powell.

Yesterday, Fletcher had only praise for his former enemy.

"All's well that ends well," said Fletcher from Queenstown, adding that he wanted the land for its strategic position and development potential.

"We've been aggregating around Clearwater for some time and have an extra 27ha there now."

"The team at Latimer have been very professional and it's been good for him and good for us," Fletcher said.

The court action had not been at Trans Tasman's instigation but Powell had strong opinions about how the company should be run.

"He obviously had a different view of what the company should do. He wanted it to be liquidated and the money distributed to shareholders," Fletcher said.

"But [majority shareholder] Jesse Lu and SEA with over 50 per cent didn't want that."

Trans Tasman told the NZX that shareholders would soon be sent a disclosure document outlining the two deals.

A Latimer spokesman said the deal was conditional and it would be premature to discuss it until it had settled.