N.Z.L Has Control Of Victoria Ins.

Press, Volume CIX, Issue 31923, 26 February 1969, Page 20

N.Z.L Has Control Of Victoria Ins.

New Zealand Insurance Company, Ltd, now holds 76.6 per cent of the stock in Victoria Insurance Company, Ltd, of Melbourne.

New Zealand Insurance has issued 437,064 shares to the Munich Reinsurance group in exchange for 337,414 Victoria shares previously held by the German group. The new ordinary fully paid shares issued by New Zealand Insurance will rank pari passu with existing ordinary shares, but in respect of the financial year to May 31, 1969, they will qualify only for the final dividend. The agreement was negotl-

New Zealand Insurance owned 40 per cent of the company after Attier withdrew its bid in September and sold its 15 per cent to New Zealand..

ated on the basis of Victoria shares being valued at $5. This is less than the formal offer of $5.50 made to Victoria shareholders in August by the Amer Group, of the Netherlands, New Zealand’s competitor for Victoria. At the time the market price of Victoria stock was up to $6. BID WITHDRAWN

The agreement which gives New Zealand Insurance 76.6 per cent was reached in Munich in August, but its implementation has been delayed by negotiations with the Reserve Bank of Australia. Of the present isuue, 197,020 shares were given to Munich Reinsurance Company, Ltd, and 240,044 were given to Munich Holdings, Ltd.