Nuhaka issue

Press, 17 April 1980, Page 18

Nuhaka issue

The Perpetual Trustees Estate and Agency Company of New Zealand, Ltd, the trustee for the unitholders in the Nuhaka Farm Forestry Fund, announces that it intends to make a renounceable cash issue of one new 100 c group investment fund unit for every two units held at par 100 c to unithol■ders.

For the issue the unitholders’ register will close on April 25, with entitlements

being mailed to unitholders on May 2. Full payment of the application money will be required by May 23, renunciations being accepted until May 30.

Under the terms of the trust deed the new units would rank equally with the existing group investment fund units, the trustee said. The $518,000 raised by the issue would be used to augment working capital so that the planned forest expenditure programme, in particular forestry planting and maintenance until harvest, can be completed.

Based on advice received from the forest manager, P. F. Olsen and Co., Ltd, the trustee expected the projected return for each $lOO invested to remain relatively unchanged from that stated in the original prospectus of $2844, which is equivalent to an approximate compounded earnings rate of 14.5 per cent a year. The trustee also said that agreement had been reached with Caxton Paper Mills, Ltd, on the details of a log sale agreement whereby Caxton has. the right of first refusal of the Nuhaka forest at market prices at the time of the harvest.