FLETCHERS AND KAURI

Press, Volume C, Issue 29702, 21 December 1961, Page 19

FLETCHERS AND KAURI

More N.Z. Assets Acquired “The Press 1 ’ Special Service WELDINCTON. Dec. 19. Fletcher Holdings, Ltd, through its trust and investment company, has arranged to buy those. New Zealand assets of the Kauri Timber Company, Ltd, which were not included in the deal made earlier this year. This was announced by the chairman of the Kauri Timber Company, Ltd, Mr J. R. Bishop, at the company’s annual meeting. He said that the balance of the assets now sold to Fletcher largely comprised low income producing properties which had been excluded from the original sale as they were not directly connected with trading operations. On settlement later this month Kauri Timber will have no interests in New Zealand other than investment in debentures, arranged to provide funds in New Zealand for the progressive redemption of the company’s preference shares in accordance with the terms of issue of that capital. Earlier Sale

Discussing the earlier sale to Fletcher, Mr Bishop said: “It became evident some years ago that the company had immediate as well as future problems in regard to available bush resources both to meet the needs of full utilisation of its establishments and to maintain continuity of supply. Accordingly, over the last two or three years steps were taken and much was achieved towards increasing the company’s indigenous bush resources, and without doubt these efforts materially assisted the company in being able to negotiate the sale of its New Zealand interests and enabling it to make a condition of that sale that settlement was to be made in cash. “The acquisition of indigenous bush, however, was only part of the long term problem which was foreseen, as it is generally recognised that indigenous timbers in the greater part of New Zealand will not be sufficient for the country’s needs for much more than a decade. “Therefore, the other problem with which the company would have been ultimately faced was the supply of exotic plantation grown timbers, for which it would always be almost wholly dependent on present major producers unless substantial outlays were immediately made to acquire some exotic plantations and lands on which to establish such plantations.”