Geoffrey of the Tamar Valley
The Tasmanian Greens today said that the ASX should refuse Gunns Ltd any further extensions to its suspension until it can provide real evidence that its so-called “equity offer” is anything but a fantasy.
Greens Forestry spokesperson Kim Booth MP said that after being suspended for seven weeks, it was beginning to look doubtful that Gunns shares would ever resume trading.
“Gunns claims it has a serious equity deal on the table to fund its obnoxious pulp mill, but it’s become obvious that they are using the trading halt as an artificial life-support system for their share price,” Mr Booth said.
“This comes very close to an abuse of ASX listing rules, and it’s a surprise that they haven’t been pulled up for it yet.” [1]
“The ASX should be requiring more evidence that this so-called equity offer is anything more than a wishful fantasy.”
“The trading halt is not only doing massive harm to Gunns’ corporate image, it is prolonging the anguish for residents in the Tamar Valley who just want to put the whole pulp mill nightmare behind them.”
[1] The ASX’s Listing Rule 17.2 states that a company requesting a voluntary suspension must provide:
• Its reasons for the suspension.
• How long it expects the suspension to last.
• The event it expects to happen that will end the suspension.
• That it is not aware of any reason why its securities should not be suspended.
• Any other information necessary to inform the market about the suspension, or that ASX asks for.
• Yesterday on Tasmanian Times: Gunns: Is it all over, Red Rover? 5pm: The Company requests that its suspension from trading …
First published: 2012-05-01 02:08 PM
• Alison Andrews, Examiner: Pivotal Gunns decisions on hold
GUNNS won’t decide on an extension to managing director Greg L’Estrange’s contract or on where its head office will be located until after its equity raising has finished.
A company spokeswoman said yesterday that Mr L’Estrange was not available for comment after Gunns posted its latest market update to the Australian Securities Exchange, on Monday.
She said that matters such as the possible extension of Mr L’Estrange’s contract past July, the site of the company’s headquarters after it leaves its Lindsay Street, Launceston site later this year and a possible name change would be finalised after Gunns’ recapitalisation was completed.
This week’s update said that preparation for an equity offer was continuing.
The company spokeswoman said that the most current financial information regarding the proposed $3 billion Bell Bay pulp mill would be contained in the documents associated with the company’s proposed equity raising, which would be released to the ASX.
“The date for that announcement is yet to be set,” she said.
An ASX spokeswoman said that Gunns remained in a trading suspension at the company’s request.
She said that trading suspensions could be applied for an indefinite period within reason.
But the company would need to provide regular updates to the ASX to show that it was acting to ensure reinstatement of trading as quickly as possible, she said.
Launceston financial analyst …
