Buyer revealed

Press, 23 September 1980, Page 18

Buyer revealed

The mystery surrounding the purchase of a major holding in Midland Coachlines, Ltd, from the Government Insurance Commissioner was resolved yesterday. said Mr J. R. Maddren, Chairman of Midland. The buyer of the just on 20 per cent interest of the Government Life Commissioner in Midland Coachlines is Mr C. J. Giltrap of Auckland. It takes his stake in Midland to 24.9 per cent. The sale of 345,000 Midland ordinary shares and 130,015 11 per cent 100 c specified preference shares for an outlay of nearly $750,000 was reported last week. Mr Giltrap’s motor business interests include Westbay Motor Company, of Tauranga, Giltrap Mazda and Gulf Mazda, of Auckland, and Wellington Datsun, companies which hold. Mazda, Datsun, General Motors, Volkswagen, and Fiat franchises. Mr Giltrap said that he liked Midland’s prospects, arJ had been buying shares in the company for the past 12 months. He had approached the Government Life Office and asked it to consider a sale that would bring his interest to the 24.9 per cent permitted under the Commerce Act without making a takeover bid. “I see Midland with a good future and management,” said Mr Giltrap. "The rental business has prospects for tremendous further growth.” Midland and • his own

present business had mutuality of interests — both were in the motor vehicle field. “I think we have expertise t contribute to Midland become more profitable to the benefit also of other shareholders,” Mr Giltrap added. He saw no prospect] of looking to drastic changes] in Midland. He had taken] the stake in the company purely as an investment. He hoped to have talks with the Midland board in the near future, and hoped that the approach would be welcome, and that it was accepted the purchase had not been made with rationalisation in mind. Indeed an assurance to that effect had been given to Government Life, which had taken a very responsible attitude towards the Midland future. The Examiner of Commercial Practices had been advised of his investment intentions, Mr Giltrap added. “I think we can help Midland and Hertz to grow much stronger in the next few years,” he said. Mr Giltrap said he saw the move as a long-term diversification in a field in which he could share expertise. For instance he thought his group-wide spread of vehicle franchises could contribute in fleet replacements and marketing of used vehicles. He saw vehicle rental as having a great future from which Midland would benefit. As well, tourism had the prospect of strong growth from increasing numbers of Japanese, as well as other visitors.

In a comment on Mr Giltrap’s purchase, Mr Maddren said that the Midland directors were justifiably concerned at the purported sale by the Government Insurance Commissioner, in the light of the assurances given by the Commissioner to both Dalgetys and Midland at the time of purchasing the shares from Dalgetys, in his interest was as a long term investment. “On that basis Dalgetys had indicated its willigness to sell to the Commissioner. “Without any discussion with the Midland directors, the Government Insurance Commissioner has now apparently sold a substantial part of his holding, only twelve weeks after his purchase from Dalgetys. “The directors of Midland are most concerned at this turn of events, and propose to take all possible stops to protect the interests of the remaining shareholders in the company,” Mr Maddren said.