Kauri disposes of a financial burden

Press, 22 February 1978, Page 23

Kauri disposes of a financial burden

Kauri Holdings. Ltd, has disposed of the group's Victorian assets for a total consideration of S3.BM, all of which is due to be paid by June 30. 1978. The prices obtained results in a loss against bookvalues, of about SIM. The proceeds from the; sale of the assets, together with substantial reductions in stock and debtors in all divisions, will have the effect of reducing the company’s borrowing by about S7M by the end of the current financial year, and will

consequently result in a i very substantial reduction in interest costs. The Kauri group now comprises (he major sawmilling complex in the Circular Head area of Tas mania, as well as Kauri’s manufacturing and marketin-' divisions in South Australia. The marketing of Tasmanian oak products in all mainland markets will be handled from Kauri’s head office in south Melbourne. Interest savings will be at the rate of about $650,000 per annum, and the trading losses that were being incurred in the Victoria division will no longer be a burden to rhe group. The assets sold included the whole of the issued capital of Kauri Timber Company (Vic) Pty, Ltd, a nontrading subsidiary, the name of which will be changed. I The assets in Victoria ] primarily comprise the milling and timber processing complex at Broadmeadows. " The purchaser is .1. Wright and Sons Pty., Ltd, and "all of Kauri’s trading activities in Victoria in imported timbers, board materials, and timber-engineered products

will be undertaken bv Bee-cham-Wright from February 17.