Hitch To Trading In Hamersley

Press, Volume CVII, Issue 31380, 27 May 1967, Page 18

Hitch To Trading In Hamersley

(New Zealand Pre** Association!

AUCKLAND, May 26. The Reserve Bank is allowing New Zealand stock exchanges to trade Hamersley Holdings fully paid shares in New Zealand currency, but has withheld permission to deal similarly in the contributing scrip.

The 50 shares, fully paid, and isnsed at $2.50, have been granted .courtesy listing on the stock exchanges. The chairman of the Auckland Stock Exchange (Mr M. P. Hay) said on Thursday that the exchange would make a protest to the Reserve Bank over the contributing shares. These are paid to 25c, and issued at $1.25, and the balance, comprising 25c capital and $l.OO premium is payable i on, or before, October 31. Hamersley Holdings, Ltd., is the first Australian listed i iron ore venture, and the I issue of slom worth of 50c I shares is the biggest and most ' widely-spread public float in Australian company history.

In New Zealand, the Reserve Bank Is treating the stock as an overseas sterling area security subject to the normal regulations of the bank, Including the requirement to deposit the scrip. The move on the contributing shares is understood to result from the difficulty in policing of the funds used to meet the call. This can only be met with funds held overseas in securities and realised for re-investment. Funds not re-invested are required to be remitted back to New Zealand through the banking system unless it can be substantiated that these were held before June 16, 1966.