BID FOR U.S.S. CO. N.Z. firm to seek majority holding

Press, Volume CX, Issue 32406, 19 September 1970, Page 1

BID FOR U.S.S. CO. N.Z. firm to seek majority holding

(New Zealand Press Association) TAURANGA, September 18. R.A.O Holdings, Ltd, of Tauranga r has decided to seek a majority shareholding in the Union Steam Ship Company, Ltd.

The chairman of directors of R.A.O. Holdings (Mr R. A. Owens) said today that the company should be in a position to make its bid by late November.

The company wanted to do this “for New Zealand,” he said. “For this purpose it is probable that one of the R.A.O. Holdings companies will be broken off to go public.” Mr Owens said there was

tremendous interest in the proposition and he could see no difficulties in raising the necessary equity capital. “I have enough information from financial advisers to make me feel confident the money will be readily available, once we have examined all aspects of the proposition.” His company wanted control over management and policy of the Union Company. “We believe that if this is possible, it would improve the Union Company to the extent where it would become much more profitable. “Unless control is firmly in New Zealand hands any take-over would be detrimental to our country.” High price Mr Owens said he could not give a firm figure for the company’s bid. “It appears that the P. and O. Company thinks the Union Company is very valuable. We have to agree that the seller is not desperate, so the price will be high. But we are quite happy to pay for value. It is what we have done in the past.”

His company was not interested in participating in

Asked about possible participation of other New Zealand companies in the R.A.O. Holdings bid, Mr Owens said: “Every major company involved with exportable cargo has evidenced interest in the proposition. Freight rates “Whether they will go as far as to invest depends on our producing an attractive proposition which shows itself to be viable and does something to stabilise freight rates.

“The rapid increase in freight rates has to a large degree made expansion of trans-Tasman trade so difficult.”

Mr Owens said he was a little perturbed by a report ’ which, he said, indicated ’ that his company had made -an approach to . Thomas Nationwide Transport, which is interested in acquiring the Union Company. Mr Owens said that a 1 T.N.T. company official had telephoned his firm early in the week and said that its managing director (Mr E. H. ’ P. Abeles) would be “coming over.” Mr Owens added: “So we saw him.” Discussions with T.N.T. representatives last night only served to reinforce his conviction that the Union Company should be predominantly New Zealand-owned and run. “As far as T.N.T. is concerned it is not an ‘honour and glory’ thing. It is ' a business proposition. The Union Company is a business on the market. It involves sea transport and so they have a keen interest.” • Joint venture Mr Owens did not rule out the possibility of T.N.T. participation in the bid by R.A.O. Holdings. He said: “T.N.T. did not discourage the line of thought that New Zealand could have majority participation ' with them. We will meet 1 them again when they come 1 back to New Zealand. I am 1 very impressed with Mr Abeles. He has a very flex- ’ ible line of thought and I ’ believe he understands the ’ situation in New Zealand 1 quite well.” : Mr Owens also said: “We I will be talking to a lot of people before this thing is | finalised.”

any take-over as “a tame shareholder.”