Tom Ellison, general manager of Wills Financial Group, said the former members of the credit union signed up to the Share Sale Facility offered as part of the demutualisation process. “Those members had the very reasonable expectation that their shares would be sold at a full and fair market price,’’ Mr Ellison said. “Instead, their shares have been sold to institutional investors for $2.50 each, way below the current trading price of over $3.00’’
“That represents more than $7 million ripped out of the local economy.’’
Mr Ellison said while institutional share placements often take place below market value, former credit union members should have been warned that there was a very real risk they could suffer financially by signing up to the Share Sale Facility.
Mr Ellison said the event highlighted the importance of seeking independent financial advice prior to making investment decisions.
