New act snags I.E.L.

Press, 17 March 1977, Page 28

New act snags I.E.L.

NZPA Sydney Industrial Equity, Ltd, the Sydney-based investor, in which Brierley Investments, Ltd, of New Zealand, has a substantial holding, has run into trouble because of its status under Australia’s new Foreign Investment Act. 1.E.L., 60 per cent owned

by Country and General Life Insurance, which in turn is 95 per cent owned by Brierley Investments, was classified as a foreign corporation under the 1972 Companies (Foreign Takeovers) Act. Under this law a corporation was deemed foreign if 15 per cent of the voting shares were controlled by foreign

interests. Under a new act, however, “foreign” is not determined purely by voting shares, but the over-all number of shares in the hands of foreign individuals or companies. Yesterday the “Australian financial review” reported that I.E.L. had recently reorganised its affairs to take account of the new act and received legal advice that under its present structure it fell outside the provisions of the Foreign Takeovers Act. Therefore, it did not notify the Treasury or the Foreign Investment Review Board of its intentions when lodging a take-over bid for W. M. Haughton and Company, Ltd, a Melbournebased wool, skin hide and general merchant. The newspaper reports •that the Attorney-General’s Department has advised the Foreign Investment division of the Foreign Investment subject to the requirements of foreign individuals or companies. Act. The Treasury had sought the opinion of the department. The Treasury and Foreign Investment Review Board are now considering what action to take. I.E.L. has also been acquiring shares in the Ballarat Brewing Company, the major shareholder in Carlton and United Breweires. Its bid to increase a five per cent holding to more than 12 per cent is believed to have been foiled by Carlton and United Breweries. Its two major shareholders amounting to 12.36 per cent ot Ballarat’s capital.