WARNING: “Low Ball” Offer for DNZ Shares by Energy Securities LP

WARNING: “Low Ball” Offer for DNZ Shares by Energy Securities LP

WARNING: “Low Ball” Offer for DNZ Shares by Energy Securities LP, a limited partnership associated with Bernard Whimp 16/03/2011

DNZ Shareholders have received an offer for their shares from Energy Securities LP, the general partner of which is Bernard Whimp (believed to be the same Bernard Whimp who was disqualified by the Registrar of Companies from being a company director for a four year period in October 2006, and who has previously been linked by the media with offers to buy securities (including DNZ shares) for well below their market value).

 
The share price being offered is $1.65, however, if accepted this will not be paid in one lump sum at the time of purchase. Instead, shareholders will be paid in equal instalments over a 10 year period. In addition to that, all future dividends are foregone by the selling shareholder during that 10 year period. Further, shareholders should be aware that over the 10 year period, there can be no certainty that the instalments will in fact be paid.

Tim Storey, Chairman of DNZ says “The 10 year payment period means that the actual real value being received by shareholders who accept the offer is significantly less than the face value of the Whimp-associated offer and also to the current market price for DNZ shares. I strongly recommend that the DNZ shareholders who have been approached seek independent financial advice prior to responding to this offer from Energy Securities LP.”

“I am astounded that DNZ shareholders are again being targeted by Whimp. The headline offer price is clearly preying on less sophisticated investors who may not see the 10 year payment period in the fine print of the offer, or understand its affect on the actual price of the offer.”

“While this offer is predatory, and we believe misleading to shareholders, it does seem the offer is most likely ineffective as it incorrectly states the name of the company”.

DNZ has referred the matter to the Securities Commission and is seeking legal advice as to the implications of the offer.
 


 
For Further Information Please Contact:
Tim Storey, Chairman, DNZ Property Fund Limited
Mobile: 021 633 089 – Email: tim.storey@dnzproperty.com

DNZ Property Fund Overview
DNZ Property Fund Limited (NZX Code: DNZ) owns one of New Zealand’s largest diversified investment property portfolios with commercial office, retail and industrial properties located in the main urban areas throughout New Zealand.

As at 28 February 2011, DNZ Property Fund owned 50 properties with 285 tenants, a weighted average lease term (WALT) of 4.3 years, an occupancy rate of 98% over a net lettable area of 371,481m², net contract rental of $56m with a portfolio value of $649m (latest valuations).

DNZ Property Fund Limited is a Portfolio Investment Entity in which investors hold shares, and is managed by its own internalised management team. DNZ Property Fund Limited also manages the property portfolio of Diversified NZ Property Fund Limited, which is owned by Australian institutional investors.

UPDATE: Energy Securities LP - Securities Commission Announcement
DNZ Investor Update March 2011