THE Australian Securities and Investments Commission has warned investors against accepting unsolicited offers for OneSteel shares from National Exchange Pty Ltd.
National Exchange has been offering $2 for each OneSteel share. The shares have been trading at around $2.10.
Its offer includes paying investors out in 15 instalments.
ASIC executive director consumer protection Peter Kell said the commission was very concerned by the recent offer for OneSteel shares from David Tweed and National Exchange.
He said an independent calculation by accounting firm KPMG revealed that the offer of $2 per share paid over 15 years might only be worth 78 cents a share in today’s dollars.
"That means if you accepted this offer you’d only get 13 cents a share each year until 2018.
"Remember, if you sold your shares on the Australian Stock Exchange through a licensed stockbroker you’d receive the market price for your shares and your sale would be settled within three working days after the trade."
Mr Kell said ASIC did not believe the offer was within the spirit of the legislation and the commission would be taking a close look at it to see what could be done under the law.
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