Information Sought (Press, 2 March 1981)

On 2 March 1981, Mr White, representing The New Zealand Shareholders Co-operative, addressed the secretary of New Zealand Land Securities regarding a proposed takeover of the company by a private entity. He urged for the disclosure of additional information, reiterating details already published in the company’s annual reports. Mr White emphasised the need to ensure shareholders have adequate information to assess the fairness of the takeover offer. In his letter, Mr White outlined several key points. First, he noted that shareholders' funds as of 30 June 1980 were reported at $824,491, equating to 2 cents per share. However, a note in the 1980 accounts indicated a market value of the company’s land and operations at approximately $752,380,000, significantly higher than the balance sheet value. He argued that if this surplus were allocated to all shareholders, the estimated value of shares would increase to 41 cents. Furthermore, acknowledging 45 percent of the $375,000 in agreed tax losses with the Inland Revenue would add another $170,000 to the overall funds, raising the share value to around 47 cents. Mr White expressed concern over the poor treatment of shareholders, exemplified by the substantial reduction in face value of shares from 50 cents to 25 cents due to considerable losses from property sales. He highlighted that during the last annual general meeting, it was mentioned that a profit of approximately $20,000 might be expected for the first half of the current fiscal year, which could signal a shift to consistent profitability. He urged that this potential for future profit should be factored into any evaluation of the company's true value. He also expressed dissatisfaction regarding the complexity of the financial statements, remarking that the numerous reserves and provisions made understanding the accounts quite difficult. Responses to shareholder inquiries during the previous meeting were not satisfactory, leaving a sense of confusion about the company’s operations. Mr White described the financial situation as resembling a "dense jungle," implying a lack of clarity. While he acknowledged the valuation of shareholder funds at 47 cents per share could only be an approximation, he insisted that the underlying factors were concrete. He strongly recommended that shareholders demand an independent, current valuation of all company properties to accurately compare this against any takeover proposal, a process he suggested should involve professional appraisers. In summary, Mr White’s letter highlighted the concerns of shareholders regarding the proposed takeover, urging for transparency and comprehensive valuation of the company's assets to ensure an informed decision-making process for all stakeholders involved.

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