Feltex move ‘investment’

Press, 16 July 1980, Page 17

Feltex move ‘investment’

The purchase by FelteX| New Zealand, Ltd, of a 231 per cent shareholding in! Henderson and Pollard, Ltd, is a major step by Feltex — at a cost of about $4 million — to diversify out of the competitive carpet and rubber industries.

Henderson and Pollard, is the one remaining listed forestry companys with uncommitted timber resources. The chairman of Feltex (Mr H. G. Callam) said that the purchase was an investment in a company with improving earnings and good export potential. Feltex does not contemplate purchasing further Henderson and PollaiJ shares in the foreseeable future. The chairman of Henderson and Pollard (Mr Carlton Pollard) • said that his board welcomed this interest from such a sound widely diversified company as Feltex with its Strong export orientation. •

/“I am pleased that this move will stop speculation concerning Henderson and Pollard,” said Mr Pollard. Feltex is a substantial user of timber through the furniture and bedding arm of its retail subsidiary, Smith Brown and Maple, Ltd.

Henderson and Pollard has extensive exotic forest interests in the Auckland province from Whitford to the Kaipara Harbour, and is heavily involved with indigenous forest in Westland. It also has widespread sawmilling activities, including its major mill at Mount Eden, Auckland. Henderson and Pollard had paid ordinary capital of $4,312,927, at April 30, 1979. A further $539,116 was on issue as redeemable preference shares.

The Christchurch-based timber company, H. W. Smith, Ltd, acted for Feltex New Zealand in the purchase, but Smith did not sell any of its own shares in Henderson and Pollard.

The managing director of H. W. Smith, Mr B. R. Judge, said a number of holdings were amalgamated into two large blocks. The sale of only one of these had been reported on the stock • exchange. The other transactions had been arranged directly between the parties concerned. One of the largest holders of stock in Henderson and Pollard, the Manukau Timber

Company, Ltd, with 7.8 per cent of the issued ordinary capital, said that it had not sold its interest. This leaves two other substantial shareholders, Wellesley Securities, Ltd, a Fletcher subsidiary with 3.7 per cent, and Scripsec Nominees, Ltd, subsidiary of an Auckland sharebroker, with 8.3 per cent, as likely sellers among a number which , could include Brierley Investments. Ivon .Watkins Dow is believed . to 1 be still retaining its interest. ..- ; Henderson and. Pollard last week reported a 148 per cent profit boost to $l.B mu-

lion, proposed a one-for-eight bonus issue and recommended an 11c a share final dividend in which the bonus shares would participate.

On that basis, Feltex would hold about 1,116,000 ordinary shares in Henderson and Pollard and receive a dividend, on August 25, of ‘about $122,760.