Waltus court appeal fails
Investors objecting to the Waltus property syndicate merger have had their case thrown out of the Court of Appeal.
Financial adviser Murray Weatherston, one of the leaders of the dissenting group, says the decision is a blow for minority shareholders in any New Zealand securities.
"It will be interesting to see the reasoning for the decision but if it is because the majority were in favour then why did the statute allow for the courts to consider provision for the dissenting minority," Weatherston says.
"Why would you want to hold any New Zealand securities if you're a
minority."
The Appeal Court judges have held off releasing the reasons for their decision which will probably be published early next year.
Waltus had listed the company, formed by the merger of 27 separate syndicates, on the secondary stock exchange before the Appeal Court decision.
To date, trading volume for the shares has been low with the most recent price 30 cents below the listing value of $1.
Weatherston says at current prices, the dissenting group has probably seen $1 million wiped off the value of their original investment. However, he says the court battle was worth attempting despite the final outcome.
"We accept this is the end of the line but given that our investors stood to lose so much it was important to have a go," Weatherston says.
AUTHOR
David Chaplin
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