10 Sep 2014

Turners' shareholders offered options

7:41 am on 10 September 2014

Dorchester Pacific is offering an earnings upgrade as a sweetener to persuade more of Turners Auctions shareholders to opt to swap their shares for Dorchester shares.

Dorchester now expects pre-tax profit of $11.5 million for the year ending March next year, up from its previous guidance of between $10 million and $11 million.

Dorchester, which already controls nearly 41 percent of Turners, is awaiting the response from Turners to its take-over offer which values the car auctioneer at more than $82 million.

Dorchester is giving Turners' shareholders a choice of $3 per share in cash or bonds or shares or a mix of all three.

The offer also depends on Turners shareholders getting 15 cents per share of special dividends to make use of that company's tax credits.

Turners shares closed at $3.20 yesterday.

Dorchester chairman Grant Baker said he hoped a reasonable number of Turners shareholders chose to take Dorchester shares.

He said if people choose shares over bonds it will mean a lower interest bill.

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