E. M. Jones sells out as NZ tax laws make Tonga investments unviable

Guess the value of E.M Jones - Tevita Lea‘aevai:
To Mr Keith Harris:
Are you serious about selling shares of E. M. Jones? Where can we get a Company Prospectus? If you don’t have, how can we find out the real value of E. M. Jones?

In the past Palangi from New Zealand came to Tonga to teach us how to read, write and add. The NZ teachers taught us that 10 + 10 = 20 it was very meaningful then and it is still significant today. Now, you are here in Tonga and telling us forget what the New Zealanders taught you in the past, just guess the value of E. M. Jones.

It seems to me that you are in Tonga to sell shares of an insecured company to recover the losses from exchange rates.

Tongan Investors beware, Keith is here to take your money. Quote! ” Keith said that New Zealand tax legislation has made it unprofitable for New Zealand interests to invest in Tonga,” If this is true, he would sell the companies and get out of Tonga. He is only selling shares (he just needs your money) the companies will still stay in Tonga which is contrary to the above quotation.

Government authorities should check this man Mr Keith Harris to make sure that no Tongan Investor falls into trouble.

Beware! Malo - Tevita Lea‘aevai

Business sale raises questions - Meleane Connor:
Mr Keith Harris wants his cake and wants to eat it too.
For those interested prospective buyers, my advise is to seek an accountant, business broker or solicitor specialising in business transactions. Let these advisors negotiate on your behalf to ascertain whether Mr Harris is offering for sale the E. M. Jones Group or shares in the company.

For the sale of a business, the procedure is in exchange for a prospectus on the business, interested parties have to sign a confidentiality agreement and release details of their finances. The prospectus details all the business owners, assets, financial details for the last three years, staffing etc.

On receipt of the prospectus, the prospective buyers must have their accountants evaluate the information given, and advise the value of the business. The prospective buyers will then sign a contract of offer to buy the business. The business owner can come back with a counter offer or refuse the offer to purchase.

In my years as a business broker, I have not come across where “secret biddings” are done on the sale of shares or a business.

So for all “Buyer be Aware” seek proper advise. - Meleane Connor

Prospective purchasers can make informed decisions - Keith Harris, Director E.M Jones Ltd.:
I have read with interest recent comments regarding the sale of the E. M. Jones Group of companies.

For the record, the process I have followed to date is as follows:
- A notice of sale and a confidentiality agreement (CA) is available to prospective purchasers (PP).
- On receipt of a signed CA and details of the PP finances due diligence packs have been released. These packs contain financial accounts, details of assets, trading analysis, valuations of our leases, sales figures up to February of this year, and a commentary on senior staff.
- PP will then be invited to submit their offer which can be for the Group of companies in totality or any of the individual companies. This will be by way of tender. There is no secret bidding.
- The directors of E. M. Jones will then decide which offer or offers they accept.

I have not released what I believe the valuation of the companies are, as in my opinion to do so would not be prudent. I am certainly not asking any PP to guess the value of the shares as the information I have provided will enable them to make an informed decision.

The companies are all trading profitably and have strong balance sheets. The reality is under NZ Tax legislation it is simply not viable for a New Zealand resident (for taxation purposes) to own a Tongan based company.

I hope this clarifies the position.

Yours sincerely - Keith Harris, Director E.M. Jones Ltd.