CHRISTCHURCH EARTHQUAKE UPDATE
The Colonial Motor Company Limited has four dealership operations in Christchurch – Team Hutchinson Ford in the city, Avon City Ford and Avon City Motorcycles in Sockburn and Southpac Trucks at Hornby.
Apart from some minor damage in the three major earthquakes the only dealership significantly physically and operationally affected on an ongoing basis has been Team Hutchinson Ford which is located in the block bounded by Tuam Street and St Asaph St, south of the Square and inside the Red Zone.
The September earthquake first damaged the upper levels of the brick buildings (which had been strengthened in the 1970’s) which was made worse on Boxing Day and again on 22 February. Preliminary engineering assessments have shown that, after some demolition on the upper level and erection of safety barriers, we will be able to operate safely from approximately 40% of the facility when public access is restored to the area.
We have not as yet detected any damage to vehicle or other inventory and we are working with our insurers on various claims covering material damage reinstatement of the facility together with increased cost of working, limited payroll and rent coverage.
Surrounding buildings were much more seriously damaged and some have already been partly demolished. It is possible that we may be the only or one of very few buildings to remain on our city block.
The dealership hopes to be operational in a limited way before the end of April. The waiting has been a stressful time for John Hutchinson and his team as every staff member has had their own personal circumstances to contend with in addition to their employers business.
UNSOLICITED SHARE OFFERS
Shareholders will most likely be aware from the recent media coverage that there have been “unsolicited low ball offers” made to shareholders of a number of listed companies. These offers have caused the Securities Commission to seek injunctions to prevent any consequential share transfers, for the offeror to go back to offerees to provide better explanation of the terms and conditions and to prevent any further such offers.
We wish to alert shareholders that we are aware of an approach to the Company’s Share Registrar for a copy of the share register. The Company has not itself received a formal request.
Shareholders should carefully read all the terms and conditions of any unsolicited offer they may receive to purchase any of their shares and, if they are still uncertain whether or not the offer is reasonable and fair in relation to the current sharemarket price, they should seek advice, preferably from a qualified financial advisor.
