Touche.........................haha love it!
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Suggestions please on how the Fonterra saga will play out.
My view is a reduction next year in the payout to farmers, following on from this year of drought.
Which will result in farmers needing a bit of finance.
Better word the letter very well else the small shareholders might get the impression they are not wanted
There's an awful man who wants to steak your shares but we know you don't really want to sell them but anyway let us buy them anyway a a fair ( but hugely discounted) price because we are good guys. Wil they wonder if they are being conned again? What's the trap?
Might be a proactive exercise but just doesn't seem to send the right message to shareholders.
Good god ....documents hardly plain English are they?
I think the letter is worded rather well, and no they are not buying them at a hugely discounted price.
HNZ are not buying the shares. Rather they are pooling them and placing them on the market so the shareholder avoids brokerage fees.Quote:
The price per Share which you will receive for your Shares will be determined by dividing the total proceeds of the Shares sold under the Plan on the day on which your Shares are sold by the total number of Shares sold under the Plan on that day.
Yeah I got that bit but after being bombarded with unsolicited offers to steal your shares here is another unsolicited offer to take the shares off your hands ...at market price.
The hugely undervalued comment was winding Percy up.
So mrs jones thinks she needs to accept this unsolicited offer because it has come from the company and is heaps mor official looking and gets hnz to broker the sale of them. In a few months time they go to 1 dollar ....mrs jones will not be happy will she ...when selling wasn't even on her mind.
Very Noble but the maximum of 10,000 seems a bit high. Brokerage costs are reasonably efficient at that level.
I guess it is hard to word the offer, without it being seen as investment advice. Hopefully one of the journo's picks this up and spins the appropriate slant on it.
Yes.
Minimum holding requirement is 500 per NZX rules (can be force to sell if under that) so that should clearly be covered.
At current shareprice (86c) if they had set the maximum at 5000 shares, that would be $4,300. That is probably the right level.
Setting it at 10,000 means those who hold upto $8,600 worth. That can be sold for less than $60 (ASB telephone rate) and even lower if they have an internet broking account.
They have set the limit now so no point arguing where they should have set it (sorry for bringing up). Overall it is a positive thing and should clean up the bottom part of the register a bit.
I wonder why they have done it though - they aren't the first company to be targeted and no other company that has been has offered a similar scheme.
I also wonder since have obviously gone to some cost in doing this, whether they should have done a compulsory sale for those with less than 500 shares at the same time. (that would probably send the wrong message so can see why they didn't but from a practical perspective, is a missed opportunity).
Disc: Holding (10,000 shares incidentally)
Possibly Heartland is taking advantage of an opportunity to reduce the number of small shareholders, which no doubt cost the company.
Will hats off to HNZ,being proactive and doing the right thing to help small shareholders receive full value for their shares.
Good on you HNZ.