COMMERCIAL Merchant Finance has 22.5 p.c. of Rex Av.

Press, Volume CXI, Issue 32613, 22 May 1971, Page 20

COMMERCIAL Merchant Finance has 22.5 p.c. of Rex Av.

(New Zealand Press Association) AUCKLAND, May 21. Merchant Finance and Investment, Ltd, has acquired a 22} per cent interest in Rex Aviation (New Zealand), Ltd. The chairman of Rex Aviation (Mr C. B. Candy) reported in a message to the stock exchange that Merchant Finance had purchased 152,000 shares from J. A. Gilbert Holdings, Ltd, of Australia.

The managing director of i Merchant Finance (Mr M. D. i Johnson), said that his com-1 pany was not contemplating i a complete take-over at this stage. He said that his com-1 pany had acquired the shares 1 slightly above the present i market price of 40c a share. < “The shares are a good buy, as the asset backing of i the company is. about 70c a I share,” Mr Johnson said. < Mr Johnson said that his ' company considered that 1 Rex Aviation (N.Z.), Ltd, had < a promising future, and his < group would be able to pro-: vide financial assistance to 1 the company. < Mr Candy said that shareholders would be reassured i to note that a progressive i merchant banking group was i taking an active financial < interest in the company. This move should further 1 strengthen the company’s I operations and enable the 1 directors to consider future < planning in a more positive 1 manner. . 1 Merchant Finance has re-I

ceived approval from the Reserve Bank to remit funds to Australia to cover the purchase price of the shares. J. A. Gilbert Holdings bought the 152,000 shares in Rex Aviation, in 1968, after a flrst-come first-served offer. As it now appears that the take-over offer for the Australian subsidiary company of Rex Aviation by Commonwealth Aircraft Corporation, Pty, Ltd, will succeed, the directors of Gilbert Holdings decided to dispose of their shareholding in the New Zealand company, said Mr Candy. He said that the Commonwealth Aircraft Corporation woud be confining its activities to Australian-based entities. Rex Aviation (N.Z.), Ltd, has a 57 per cent shareholding in Rex Aviation Holdings, Ltd, the light aircraft distributor which floated to the Australian public a little more than three years ago. At the beginning of the year, the Australian company was put into receivership. Last month, its directors recommended its shareholders to accept an offer of 20c a share from Commonwealth Aircraft Corporation. The directors of Rex Aviation (N.Z.), Ltd, also - announced that unaudited pro-

fit for the nine months to March 31 was $29,843. In the year to June 30, 1970, the New Zealand side of operations made a profit of $38,000. However, the overall result was a loss of $217,332, caused by the failure of the Australian-sub-sidiary. Mr Candy said in his report that the market for new aircraft has shown a marked upward trend. He added that the final quarter is expected to show a good