N.Z.M.C. expands TV rental interests

Press, 12 July 1980, Page 19

N.Z.M.C. expands TV rental interests

PA Wellington The New Zealand Motor Corporation has strengthened its position in the rental television business with a partial takeover of U.D.C. Group Holdings’ former subsidiary, Rentacolour New Zealand Ltd. ! N.Z.M.C. acquired Group: Rentals N.Z. Ltd earlier this! year after the takeover of, General Finance by a con-! sortium of the National: Bank of New Zealand and: Todd Motors. This gave the N.Z.M.C.) about 31 per .cent of the New Zealand rental tele-i vision business. It has now acquired, an-; other finance company! “loose end” — the 60 per: cent stake held by the A.N.Z. Banking Group N.Z. Ltd in Rentacolour. I The A.N.Z. acquired the stake because of its pur-i

chase of U.D.C. Group Holdings. It appears that both the National and the A.N.Z. banks are keen to dispose of: shareholdings in the new subsidiaries, which are not

directly involved in the finance industry. Rentacolour is a comparatively newly formed (television group, and held (some four per cent of the .rental market. The remainling 40 per cent shareholding' I is held by British television

lirental interests. It would not be surprising, .'if the British Rentacolour; i interests now also moved to ■i sell to N.Z.M.C.’s fully' ‘owned subsidiary Group ■;Rentals N.Z; Ltd as their (shareholding now becomes a ■; much smaller proportion of: the new company. No mention was made I about the price the A.N.Z.' : Banking Group received for 'the Rentacolour shares. But;

lit was presumably substantial, as it is understood I other television companies were keen to acquire the company. An N.Z.M.C. spokesman

said there were no plans to release details of the price at this stage, as the matter was currently before the Commerce Commission for approval. Additionally, it was only a partial takeover of another company, he said. In a statement to the

! Stock Exchange. N.Z.M.C. managing director (Mr R. N. ■; Mason) said the purchase 'would consolidate Group ■Rentals' position as New > Zealand’s “leading television ■ rental company.” Rentacolour would gain : from its close association : with a large organisation with outlets throughout New Zealand, Mr Mason said. The employment of Rentacolour staff would not be affected.