Exch. Restrictions Forced Rex Float

Press, Volume CVI, Issue 31276, 24 January 1967, Page 16

Exch. Restrictions Forced Rex Float

(N.Z. Press Association—Copyright) SYDNEY, January 23. New Zealand Government restrictions on transfer of funds to Australia to finance Rex Aviation, Ltd’s expansion plans appear to have forced the company’s hand into floating a public share issue in Australia, the “Australian Financial Review” said this morning.

The newspaper said extension of Rex Aviation’s Cessna light aircraft distributing franchise to South-east Asia was understood to be one of the main factors behind the decision to offer shares to the Australian public. Plans to float the group were announced at the weekend by the chairman of both

the Australian company and its New Zealand parent, Rex Aviation (N.Z.), Ltd. (Mr Miles King). Rex Aviation is 73 per cent owned by the New Zealand company with the remaining equity being held by about 20 executives of the Australian company. Australian equity in the company will be 43 per cent after the float, which is expected about March, the newspaper said. The Rex group holds the Cessna distributing rights for Australia, New Zealand, New Guinea, New Caledonia and the Pacific Islands. The Financial Review said it was understood that it had been offered extension of its franchise to cover all of South-east Asia, except Japan and India.