N.Z. Insurance Buys Into Victoria

Press, Volume CVIII, Issue 31772, 31 August 1968, Page 18

N.Z. Insurance Buys Into Victoria

The struggle for control of Victoria Insurance Company appeared to be developing into a market battle between the original bidder, the Amev group of Holland, and New Zealand Insurance Company, the Australian “Financial Review” reported yesterday morning.

When company officers were asked to comment, the chairman (Mr A. G. Wilson) said last night that New Zealand Insurance had already purchased more than 25 per cent of the capital of Victoria Insurance.

I This holding, with other I 'friendly minority interests. 1 was adequate to prevent con- . trol of Victoria Insurance pass-

ing to a third party, Mr Wilson said. At a price of perhaps $5.70 a share, this would have cost about $3.25m.

Yesterday morning the “Fin ancial Review” said that Amev was now buying on the open market and had paid up to $6 for parcels of Victoria scrip in an apparent effort to hold a position against other buying. “This other buying, coming originally from the Munich Reinsurance group of Germany (the second largest reinsurance group in the world), is nbw believed to have been taken over by New Zealand Insurance. Munich Holding “Market sources also suggest that the New Zealand company has bought the whole of the holding built up over a period by Munich Reinsurance.” The “Financial Review” continued: “The Amev holding—originally standing at some 161,000 —is understood to have been built up to close to 300,000 shares through market buying. “Amev is also placing before shareholders its formal offer of $5.50 a share for half —or more if they choose to offer it—of their holdings. “The current market prices of up to $6 and the Victoria Insurance board’s efforts to draw attention to these prices, however, would obviously lessen the attractions of this formal offer. “Establishment Cost” Amev is understood to be determined to keep buying, rationalising the additional expense as an establishment cost of setting up in Australia. Such rationalisation would not apply in the case of the New Zealand company. It is already well established in this country drawing most of its profit from Australian sources. It does not have a life office in Australia, however, and the Victoria has. Good Result By A. and S. The group net profit of Armstrong and Springhall Holdings, Ltd, was about $190,000, subject to audit the directors announced. Last year the profit was $153,202. The final ordinary dividend of 6 per cent makes a steady 10 per cent total; last year a 1 per cent bonus dividend was added. The dividend is payable November 18; ex dividend November 4.