IT WAS another dog-day afternoon for the board of BrisConnections, which had to mull over news that the company's biggest shareholder is a 26-year-old owner of an IT company operating from a block of flats in St Kilda.
Nicholas Bolton of Australian Style Investments bought 47,643,166 BrisConnections unit trusts for about $47,600. Except that he owes the company a further two instalments of $1 each, under the deal devised by Macquarie Bank.
BrisConnections company secretary Tamira Herbst has been desperately seeking Bolton, without any luck. "If you speak with him again, ask him to please get in touch with Tamira," said a spokesman.
After visiting Australian Style Investments' HQ in Fitzroy Street, where the office number is written in marker pen on masking tape at the front gate, Full Disclosure has concerns that Bolton may not be able to pay the $95,286,332 he will owe the toll-road company for his shares.
It certainly doesn't have enough cash to employ top-notch security, given the age of the tired and unthreatening mutt selected to guard the company's front door.
But behind that door is the biggest shareholder of BrisConnections, which was floated in July after winning a $3.5 billion contract to build an airport toll road in Brisbane. Shares were issued at $3 each, to be paid in three instalments of $1.
With 12.2% of the company, Bolton now controls more than Queensland Investment Corporation. One wonders if he will use his stock and potential voting power to challenge the position of Trevor Rowe — the chairman of QIC, which invests the superannuation of Queensland public servants, and of BrisConnections.
Fang He, the Melbourne housewife who bought 8% of the company — with a potential $65 million debt to the company — has sold her shares. BrisConnections is desperate for her to file a substantial shareholder notice to discover who now owns the shares
For a second day, staff at BrisConnections ducked questions from BusinessDay, instead choosing to refer them to a PR flack. "It's an unfortunate situation, but we can't say much until we have been in contact with Mr Bolton," said spokesman Mark Gold. "The company has written to him, and tried to call him."
It appears that Bolton, like many small investors, bought the stock using an online account. BrisConnections is adamant that it will collect what it is owed, even if it means employing debt collection services. Bolton may need a bigger dog.
Of course, BrisConnections could send a bill to Macquarie Bank, which put together this dog's breakfast of a deal. It pocketed $100 million in fees.
Transfield rattles tin
NO MATTER how hard Transfield Services rattles the tin, it just can't get a much-needed placement over the line.
The company has been suspended for a fortnight and last traded on November 7 — when the share price tanked 24%, from $4.60 to $3.50.
Transfield, which provides maintenance services to the mining industry, tried to get a $265 million placement over the line at between $1.80 and $2.20 a share. That failed.
It then tried to raise $200 million at $1.50 a share, with Macquarie Bank and ABN Amro as the joint lead managers. Yesterday, that capital raising was also pulled, due to a lack of takers.
"Please be advised Macquarie has withdrawn all bids for the Transfield Services placement (including Tolhurst's bid)," read an email from broker Tolhurst to clients. "The company is expected to launch a revised offer shortly."
Christmas fear
THE folk at the Australian Retailers Association have taken to heart Reserve Bank governor Glenn Stevens' call for the donning of rose-coloured glasses when looking at the economy.
Releasing a survey of Christmas shopping expectations, the representative of small and medium retailers found stats to warm the cockles of shopkeepers' hearts. "Despite an overly negative outlook on the economy at large," said executive director Richard Evans in a statement, "shoppers are still ready to open their wallets this Christmas, with more than 55 per cent planning to spend the same amount of money as last year on Christmas gifts and more than 12 per cent planning to spend more."
Lies, damn lies and statistics is the adage.
Another way of reading those numbers is that 33 per cent of shoppers are planning to spend less on presents than they were last year, which is a rather gloomy prospect. Or 88 per cent are going to spend the same as last year.
At least we know the figures are close to the mark, even if the spin is hard to swallow. At the Australian National Retailers Association — which looks after the chains — a similar question yielded almost the same answer.
The ANRA survey also had some interesting figures on Christmas shopping habits: 24 per cent of generation Y, who are facing their first recession, said they would buy gifts for themselves, compared with 17 per cent of the population.
Being the slack bunch many of us are, the survey found 83 per cent are yet to start their Christmas shopping and 3 per cent will wait until Christmas Eve — which is late, but not as late as the 3 per cent who say they'll wait for the Boxing Day sales.