NIB shareholders in the North West and New England are being warned off an unsolicited offer to purchase their shares for less than they are worth.
Letters of offer to purchase the shares have been sent out to residents – possibly from controversial Melbourne shares dealer David Tweed – under the company name Australian Share Purchasing Corporation (ASPC).
The offer is for 50 cents a share. This is well down on the market price of 90 cents a share quoted – as required by law – in the offer documents.
Yesterday’s price was 70 cents per share.
Nib’s managing director Mark Fitzgibbon said the company did not endorse any unsolicited offer by ASPC – or any other company – to buy nib shares from its shareholders.
Thousands of regional residents received small packets of shares last year when nib demutualised.
Many of the shareholders – who include aged pensioners – have only limited experience of share ownership and may not realise they are selling an asset at a loss.
A total of 320,000 nib policyholders became shareholders as a result of the decision to go public.
“Nib shareholders who have received an offer from Australian Share Purchasing Corporation, or may receive an offer from one of the other companies associated with David Tweed, should read the documentation carefully and seek independent financial advice,” Mr Fitzgibbon said.
“Nib shareholders who accept an unsolicited offer will be at a significant financial disadvantage relative to what they would obtain if they sold their shares on-market.”
The health fund also warned that while the unsolicited offer from ASPC was below its current market value, other unsolicited offers could appear to be for more than market value.
A catch to be aware of was that the money might be paid in instalments over many years.
Nib plans to inform the Australian Securities and Investments Commission of the latest offer and will seek to work with the regulator to ensure the interests of nib shareholders are protected.
Nib shareholders who received an unsolicited offer should call nib on 1300 664 316 or email investor.relations@nib.com.au
The Leader could not contact the Australian Share Purchasing Corporation yesterday.
When we called a White Pages listed “ASPC” a staffer said the business was a conveyancing firm and that numerous calls had been received from people trying to contact the Australian Share Purchasing Corporation.