£1.5m Share Deal By Fletchers

Press, Volume C, Issue 29536, 10 June 1961, Page 17

£1.5m Share Deal By Fletchers

(Aew Zealand Press Association) AUCKLAND. June 9. Fletcher holdings. Ltd., has bought the whole of the New Zealand interests of the Kauri Timber Company. Ltd.. Melbourne, for approximately £1.5 million in cash it was stated in announcements from the boards of both concerns tonight. The principal interests involved in the deal are Kauri’s timber milling and merchandising businesses in the North Island and also the company’s shareholdings in Ellis and Burnand, Ltd.. Hamilton, Butler Brothers, Ltd.. Hokitika and New Zealand Plywood, Ltd., Christchurch.

To provide the necessary Australian funds. Fletchers had made private placements of ordinary shares at a substantial premium. In this way there will be no drain on New Zealand overseas exchange. The directors of Fletchers state that there will be considerable advantages in an integration of the New Zealand operations of the Kauri Company with the native and exotic timber interests of Fletchers. N.Z. Plywood The two companies have had a joint manufacturing interest since 1949 in New Zealand Plywood. Ltd. The directors said that it is the present intention to

maintain the existing character of the Kauri organisation. No changes are contemplated in the executive branches. They comment that the expansion of the integrated interests of the two firms will be of national importance in developing industrial ventures which will either earn or save overseas exchange. They make special reference to the West Coast, where the employment situation is serious