N.Z. Cement share “flurry” explained

Press, 11 December 1976, Page 16

N.Z. Cement share “flurry” explained

The outcome of the intense activity in the shares of New Zealand Cement Holdings, Ltd, on the New Zealand stock exchanges early in October was explained to shareholders at the annual meeting held in Christchurch yesterday. “The attention of shareholders was no doubt drawn to a short flurry of buying in New Zealand Cement shares on the market some weeks ago,” said the chairman (Mr J. P. Cook). “Since then there has been certain confidential discussions, and it was this that led to the postponement of this meeting from December 3 to December 10.”

These discussions have finished, and the position of the company remains unchanged except that about 665,000 shares have been purchased in the name of a nominee company, he said. “We understand that the shares are owned by the Portland Cement Company of Switzerland, and while the I making of this investment | was no doubt suggested by I Holderbank Financiere Glaris, I we are assured that the link between the two companies is not significant, and neither,

in any way, controls the other.” This change means that the overseas holding in N.Z. Cement increased from 43. C per cent to 51.0 per cent. A: an overseas company, N.Z Cement must obtain consent to all borrowing. “At no time in the past has this posed any particular problem, but, once a com-

□any is more than 50.0 peri ;ent overseas-owned, it is! customary for the consent, lo include a requirement that] i proportion of the new borowing comes from overseas.”! In the short term, this will! be no problem to N.Z. Ce-i ment, because the company! already has overseas funds.! But, time will show whether the group is restricted in the longer term, Mr Cook said.