Statements made by the lawyer representing Grant Thomas to a New Zealand media outlet, following a lawsuit being filed by NZX against Thomas and his business partner Dominic Pym on 5 July, are regrettably exaggerated and inaccurate.
The earn out targets for the Clear business were ambitious, which is why NZX agreed to these being classified as earn outs, rather than to augment the original purchase price.
NZX is fully confident it has discharged its obligations appropriately and reasonably, and is not
swayed by tactics of this nature - unpleasant though they may be.
NZX reports monthly to the market on its revenue-generating metrics across its portfolio of businesses. Grain trading is one such metric, and forms one part of the Australian commodities business.
Grain tonnage has been growing season on season - but not sufficient to meet the earn out targets agreed in connection with the Clear transaction.
In particular, speculation about amounts Thomas may expect to extract from litigation is irresponsible.
NZX has initiated its audit process and review of all carrying values as part of its regular financial reporting cycle, commenced post 30 June 2011.
FTSE Mondo Visione Exchanges Index:
NZX Update
Date 08/07/2011