October 15, 2003
Media Statement
Guardian Trust Funds Management To Hold Tranz Rail Shares
Statement made by Rickey Ward, Joint Domestic Equity Manager,
Guardian Trust Funds Management
Guardian Trust Funds Management will not be accepting Toll Holdings offer of $1.10 a share for our holding in Tranz Rail
of approximately 3% as the offer simply transfers wealth from our investors to Toll’s shareholders.
Our first responsibility is to our investors, and we have always held the view that the offer of $1.10 a share is far
too low.
Obviously there is a strong body of shareholders who hold similar views to ours as 17% of Tranz Rail’s shareholders are
saying “no thank you”.
We have no doubts at all that Toll will turn Tranz Rail around, as they have an excellent record of creating wealth from
under performing companies. Remaining an investor in Tranz Rail in the medium term will be good for our investors as
they will share in the value created by Toll.
We are not convinced that Toll will be restricted from making the changes they deem necessary by remaining a listed
company on the New Zealand Exchange.
The real beneficiaries of Toll delisting Tranz Rail will be Toll’s shareholders, and Guardian Trust Funds Management is
not prepared to put their interests ahead of the interests of its own investors.
Our preferred position is to remain a medium term holder of Tranz Rail shares, and provided sufficient shareholders are
of a similar view, will continue to do so.
Note To Media
Guardian Trust Funds Management is a “top five” funds manager in New Zealand with more than $3 billion in funds under
management on behalf of retail and wholesale investors, including Asteron and Guardian Trust. It has more than $400
million invested in New Zealand publicly listed companies. The funds are jointly managed by Rickey Ward and James
Lindsay.