Buntings sells Pollocks

Press, 21 October 1980, Page 30

Buntings sells Pollocks

•’ Bunting and Company. Ltd, il has sold all its, shares in its Il Australian subsidiary; T. Pol--1 lock and Sons Pty. Ltd, for a ;(substantial premium over the (shareholders’ funds and the; [■capitalisation of the futuremaintainable earnings of the! companv. The directors say that they are seeking Reserve Bank approval to leave some of ( the profits on this transaction in Australia to take advantage of other investment i opportunities: the balance of (the funds will be progressively remitted back to New Zealand for re-investment here. In an explanation of the move, they say — .“Earlier this year shareholders were advised that T. Pollock and -Sons had acquired all of the issued capital in Hamilton Brushes . (Australia) Pty, Ltd. • “A consequence of this i move was to establish a i stronger group in the brush- 1 making industry in Aust- i ralia. which has resulted in i other Australian manufac- ]

, turers taking steps to protect > their own markets. Accord- - inglv we felt that a strong"; i market penetration in paint'.’i i rollers was essential. “We have therefore been : [■having talks with the direct •'tors on Rota Cota Pty, Ltd,:? i who have held 80 per cent ; of the paint roller market iq.'l Australia for some time, “The strength of Pollocks in painr brushes and Rota . Cota in rollers in a market - sense was such that the man.-. , agement of each company, have recommended to their 4 respective boards that a merger of their operations take place. “We discussed at some.-: length our equity participate tion in the merged group but" ’ it was apparent that because - of existing: vested Australian interests we could not have ’, any real say in, or influence.' on. , the future course of the / merged company. In view of . this your board felt it was.’ incompatible to retain a substantial minority investments in an overseas private com- - pany,” the directors say. . .