ING investors: carefully consider purchase offer
News release
18 June
2009
Securities Commission encourages
ING investors to carefully consider purchase
offer
Investors are encouraged to
carefully consider the information provided with the offer
they received from ING last week. The offer relates to the
ING Diversified Yield Fund and the ING Regular Income
Fund.
ING has offered to purchase all units from its investors in these funds at set prices and subject to conditions. In particular, investors who accept the offer must agree to release ING and related entities, and investment advisers, from all legal claims in connection with the funds.
The Commission understands investors face a difficult decision on whether or not to accept the offer because the outcome is uncertain. The value of any legal claims they may have cannot be quantified at this time and, as noted in the independent expert’s report sent out with the offer, the potential future value of the units in the funds is extremely difficult to calculate.
Investors should seek independent legal and/or financial advice if they do not understand the proposal or are unsure which option to take. In this case “independent” means an adviser who does not stand to benefit from the release from legal claims.
The Commission has received a large number of complaints from investors and has reviewed the proposal documents sent out by ING. An offer to purchase securities is not subject to the Securities Act. However, it is subject to the general dealing misconduct prohibition in section 13 of the Securities Markets Act, which prohibits conduct that is likely to mislead or deceive. Based on available information, the Commission does not consider that the offer is misleading or deceptive. Therefore, the Commission has no grounds upon which to take any action in respect of the proposal. It is not within the Commission’s authority to review the merits or fairness of any offer.
The Commission is keeping in contact with the Commerce Commission as its investigation into marketing of the funds continues, and will assist where it can.
ENDS