6 June 2012
DORCHESTER PACIFIC OPTIONS - PRE-CONVERSION STATEMENT
As contemplated by the terms of issue for its options (DPCOA), Dorchester
Pacific Limited (Dorchester Pacific) advises:
1 The purpose of this pre-conversion statement is to assist registered
holders of DPCOA to decide whether to elect to convert those securities.
2 The DPCOA were originally exercisable only at an exercise price of 12.5
cents per share on 15 June 2013, by notice of the option holder given between
1 April 2013 and 31 May 2013. At Dorchester Pacific''s Annual Meeting on 27
September 2011, the terms of the DPCOA were varied to allow option holders
to, in addition to the exercise period set out above, exercise their DPCOA at
an exercise price of 10 cents per share on 20 July 2012, by notice of the
option holder given prior to 29 June 2012.
3 As noted in Dorchester Pacific''s full year results to 31 March 2012
released to the market on 30 May 2012, the following circumstances have
occurred which differ from the circumstances that existed in June 2010 when
Dorchester Pacific issued its Capital Restructure Plan Offer Document:
3.1 Dorchester Pacific was unable to secure wholesale bank funding for its
finance business; and
3.2 Dorchester Pacific, in response to the new regulatory environment, has
restructured its insurance and savings business from the then business
described in the Offer Document.
4 Dorchester Pacific does not believe that these circumstances render the
Capital Restructure Plan Offer Document false or misleading in a material
particular. Both of these circumstances were identified as risks at the time
of issue of the Capital Restructure Plan Offer Document. Dorchester Pacific
has changed its business model to adjust to these circumstances, as reflected
in its 30 May announcement.
5 Other documents that are, in the opinion of Dorchester Pacific, relevant to
a decision about whether to elect to convert include Dorchester Pacific''s
annual reports and stock exchange announcements available to be viewed from
www.nzx.com or www.dorchester.co.nz.
6 This pre-conversion statement is not known by Dorchester Pacific, or any
director of Dorchester Pacific, to be false or misleading in a material
particular by reason of failing to refer, or give proper emphasis, to adverse
CEO and Executive Director
Dorchester Pacific Limited
Tel: (09) 379 4141
Mob: 021 644 441
End CA:00223611 For:DPC Type:GENERAL Time:2012-06-06 14:30:39