Govt sells 1M shares in N.Z. Steel

Press, 22 February 1978, Page 22

Govt sells 1M shares in N.Z. Steel

PA Auckland The special sale of IM shares of New Zealand Steel, Ltd, by the Government on the New Zealand sharemarket on Monday, went to various institutions. At 165 c a 100 c share, the price was 3c a share below market value. With its remaining 3,986.913 shares, the Government now holds 18.1 per cent of New Zealand Steel's ordinary’ capital, down 4.5 per cent after the sale. It will probably reduce this further, as part of a longstated plan to wind down involvement in the company. A Treasury official confirmed the sale was part of the Government holding, and that the shares went to a number of institutional investors. Some of these institutions, which included insurance firms, had their head offices overseas, but “active in a big way locally,” and were regarded as New Zealandbased for investment purposes.

Asked if further sales were pending, the official said he could not be definite on that.

However, the Government indicated a continuing reduc-

tion of its interest in August, 1976, when it sold 1.2 M shares to institutions by private placement. The Minister of Trade and Industry (Mr AdamsSchneider), said then that Government policy was to reduce its holding in the company as it had reached the stage where heavy Government involvement was no longer essential.