Chapman Tripp has recently demonstrated its strength in advising on preference share offers, having acted for the issuers on the two major public offerings of hybrid securities that have been completed this year.
Partner John Sproat and principal Alan Lester worked with BNZ and National Australia Bank on the public offer by BNZ Income Securities (BNZIS) of perpetual non-cumulative shares, worth just under NZ$450 million. Partner Casey Plunket and senior solicitor Jarrod Walker advised on the tax aspects of the offer. This was a Tier 1 capital raising for National Australia Bank and BNZ, under both Australian and New Zealand prudential standards. BNZIS is a portfolio investment entity and a portfolio listed company for tax purposes. The share issue is the first retail offer by a portfolio listed company, and the first NZX-listed portfolio listed company issue in New Zealand.
Partners Geof Shirtcliffe and Matt Yarnell, senior solicitor Emma Sutcliffe, and solicitor Peter Wright also worked with Bay of Plenty Regional Council on the public offer of perpetual preference shares in its subsidiary Quayside Holdings Limited (owner of 55% of Port of Tauranga). This innovative offer allowed the Council to leverage its indirect investment in Port of Tauranga without selling its majority holding. The Council raised NZ$200 million from the offer, which it intends to invest in infrastructure projects in the Bay of Plenty region.