TRADING HALT IN FOSTER’S GROUP PACIFIC LIMITED (FGP) SHARES
The South Pacific Stock Exchange (SPSE) placed a trading halt in Foster’s Group Pacific Limited (FGP) shares before the trading session opened at 10.30am this morning. The trading halt has been imposed by SPSE in the light of recent media reports pertaining to the value of the consideration that will be paid for the takeover bid by Coca Cola Amatil Limited (CCA) in acquiring SAB Miller’s stake in FGP.
“It has been reported that certain value will be paid for the acquisition of shares in FGP by CCA which currently cannot be confirmed or denied by FGP. However, in order to avoid shareholders and investors acting on such price sensitive information, SPSE feels it is important to place a trading halt on FGP shares immediately,” said SPSE CEO, Ms Jinita Prasad.
The halt has been placed by virtue of Section 7.5 (i) and (ii) of the SPSE Listing Rules which states:
“Circumstances where the SPSE may halt or suspend trading for the protection of investors or the maintenance of an orderly market may include the following: prior to an announcement of any price sensitive information and pending obtaining a clarification from the company on a rumour…”
Also under Section 6.14 of the SPSE Listing Rules:
“A company should respond to any inquiries made by the SPSE within the timeframe stipulated in the following circumstances: if there are rumours or reports regarding the company…”
FGP has indicated that they will be able to provide the Exchange with information by this afternoon or alternatively may seek voluntary suspension of trading until they are in a position to clarify certain terms of the deal that are under speculation.
FGP shares will be placed on trading halt till the end of business today and during this period licensed broker representatives will not be able to execute FGP orders.
Should you require any further information on the issue, please do not hesitate to contact us.