CDPQ and Temasek cash in on FNZs uncommercial capital raises, leaving employee shareholders out in the cold

▤ Summary

FNZ’s institutional investors have exercised warrants tied to prior capital raises, increasing dilution for employee shareholders. The article says CDPQ and Temasek used warrants that let them buy FNZ shares at a steep discount to the company’s implied valuation. It argues that the financing terms favored institutional and private equity holders and harmed current and former employees. FNZ employees are now preparing a class action in New Zealand’s High Court over the alleged non-arms-length transactions.

▦ Linked Companies