19 May 2009

Plan for trans-Tasman small company market

7:55 am on 19 May 2009

The NZX would create a trans-Tasman small-firm stockmarket if it was successful in taking a majority stake in the listed Australian bourse NSX.

The plan is outlined in its prospectus to raise $20.6 million to help buy M-Co, Country Wide Publications and NSX.

The New Zealand stock market operator is issuing new shares at $4 each to existing investors.

NZX is making a $15 million bid for just over 50% of NSX, whose board is recommending investors accept the offer.

The stock market operator hopes to implement a single set of rules for those looking to list on both sides of the Tasman, if the deal is approved.

The cost of buying rural media firm Country-Wide Publications could be as much as $7.5 million if certain targets are met.