Tasman sale to Govt, Fletchers

Press, Volume CXIV, Issue 33448, 1 February 1974, Page 3

Tasman sale to Govt, Fletchers

LVew Zealand Press Association

WELLINGTON, January 7 31. The New Zealand Government and the Fletcher Trust and Investment Company. Lt shares in Tasman Pulp and Pap< which have been held by the Bowate of London.

d, have bought the jr Company, Ltd, r Corporation. Ltd,

Bowater held 6.6 m (or 17 per cent) of the issued ordinary shares in Tasman. The Government has bought 4.4 m more of these shares, and the Fletcher Trust 2.2 m giving it about a 17.5 per cent share of Tasman.

The sale was part of Bowater’s rationalisation of its international interests. Its first preference would have been to increase its holding in Tasman to give it a controlling interest, the deputy chairman (Mr M. Horsman) said. However, this would be contrary to Government policy on the control of New Zealand companies and Bowaters decided to sell its entire shareholding. STILL AGENTS Bowater Paper Company, Ltd, Australia, and its subsidiary, Bowater Paper Company (N.Z.), Ltd, will continue to act as sole selling agents for Tasman.

The Minister of Finance (Mr Rowling) said today that when such a big parcel of shares in a company of such national importance as Tasman became available from an overseas holder, the opportunity should be taken to repatriate the shares to New Zealand. The Tasman company was formed in the early 1950 s to use the timber resources of the Kaingaroa State forest. The Government and Fletchers were the original shareholders. “While most appreciative

of the part played by the Bowater Corporation in providing the Tasman company, when necessary, with operational and technical assistance, the Government thought it was in New Zealand's interest that, if practicable, the control of a company so closely associated with the use of one of the country’s great natural resources should be held by local interests,” Mr Rowling said.

The chairman of Fletcher Holding, Ltd (Mr J. C. Fletcher), said that his company was glad of the opportunity to increase its equity, and consequently increase the local ownership substantially. The capacity of Tasman’s pulp and paper mill is 215,000 tons of newsprint, 105,000 tons of chemical pulp, and 183,000 tons of mechanical pulp.

The Bowater group obtained its interest in 1959 and took over management and development of the mill and the world sales of its products.