RAO Holdings to float Sea Trans.

Press, Volume CX, Issue 32430, 17 October 1970, Page 20

RAO Holdings to float Sea Trans.

RAO Holdings expect to float New Zealand Sea Transport off as a public company about April next year, the chairman (Mr R. A. Owens) says.

Sea Transport will be the vehicle which Mr Owens intends to use to take over the Union Steam Ship Company. The takeover bid is sufficiently underwritten for it to

be made before the public company is actually floated, Mr Owens said. A survey through broking firms has shown that, with the type of support he has, Mr Owens should not have difficulty raising capital. Approaches had been made to merchant banks in London and there would be no problem raising money through them. Mr Owens is understood to have the support of most of the main New Zealand exporting firms such as Forest Products, U.E.B. Industries and others. There is no direct connection between the proposed bid and other New Zealand shipping companies but it is understood that there have been discussions with people with shipping interests, particularly R. A. Brierley Investments. The president of the Manufacturers Federation (Mr J. S. Osborne) said it could not give the bid direct support because it is federation policy not to become directly involved in commercial matters. In an address to the conference, Mr Owens said he believes the crisis in the New Zealand shipping industry is, to a large extent, because of the running down of the fleet over the years and the resultant reduced area of operations. “The drop in morale and general behaviour was evident 22 years ago when the officers banded together and put in their resignations. “The need for permanent employment, proper training facilities, modern vessels, new handling methods for cargo, prospects of promotion between sea and shore and many other considerations are overdue.” Asked what made him thin'- the seamen would behave better for him than they have for the Union company, Mr Owens said he could only go by his company's record with the Aotearoa.