FNZ Shareholder feud: Board's oppressive tactics persist as FNZ extends equity deadline without addressing core concerns

LONDON, April 15, 2025 /PRNewswire/ -- FNZ has extended the deadline for three "catch-up" equity offers to 14 May 2025, in what appears to be an effort to manage growing discontent among employee shareholders.

Impacted shareholders, however, say the extension fails to address the fundamental issues: significant dilution, lack of transparency, conflicts of interest on the Board, uncommercial terms, and financial barriers that effectively exclude them from participating.

The three offers relate to equity raises in May 2024, August 2024, and most recently 12 April 2025. Together, these capital raisings have diluted employee shareholders by over US$4.5 billion – including US$1.5 billion from the most recent raise of US$500 million.

Despite the magnitude of these transactions, affected shareholders were not notified of the dilutive impact until early 2025 – months after the first two raises had already occurred. Notices regarding the 2024 raises were only issued in February this year, giving shareholders just 30 days to respond. FNZ has since extended this deadline three times, culminating in the new May cut-off.

But former employees say the real issues run deeper.

"It's not about having more time," said one shareholder, who asked to remain anonymous.

"The documents are complex, and I'm being asked to contribute money to retain equity that I was originally granted for years of work. That's never been the model before."

Another added: "The only reason I'd even consider investing is to avoid being diluted further. But the amount is way beyond what I or any of my colleagues would be able to afford. They know that, so they are just giving themselves a 200% return at the expense of my equity."

Adding to the unease of the bullying tactics used to muzzle this shareholder class, a social media account on X (formerly Twitter) that had been sharing updates of media coverage about the situation was recently suspended. A new version of the account has since been launched at x.com/nzclassaction.

FNZ was founded in New Zealand in 2003, and remains domiciled there. The board's actions may violate The New Zealand Companies Act 1993, and the shareholders have said that they will reserve the right to take the dispute to the New Zealand High Court if an agreement cannot be reached.