Carter interest sold to AHI

Press, 30 April 1981, Page 18

Carter interest sold to AHI

In a deal worth almost $lB million, Alex Harvey Industries, Ltd, yesterday bought the interest in Carter Holt Holdings, • Ltd, held by Fletcher Challenge, Ltd. In a joint statement the directors of Alex Harvey Industries, and Carter Holt, announced that the 23.6 per cent of the capital in Carter Holt held by Fletcher had been purchased by AHI for 420 c a share. In March. 1980, Fletcher Holdings, Ltd, acquired 23.6 per cent of Carter Holt shares in the course of making a take-over offer for the whole of the issued capital of Carter Holt. Subsequently Carter Holt made a one-for-three bonus issue bringing the Fletcher Holding to 4,280,303 shares, the directors said. v After the decision by Fletcher to withdraw its bid, it entered into an agreement

with Carter Holt that the shares held by it would be sold only to purchasers who had the full approval and support of the Carter Holt ■board. ■ -- ’ - ’ - -. >- Alex Harvey was. widely recognised for both its manufacturing and' planning strengths and its competence in research and development, and Carter Holt welcomed the opportunity to achieve a closer association with such a highly-respected company, they said. “The advantages which Carter Holt has in the development, processing, and export in resource-based industries will further stengthen the bonds between the two companies.” It had been agreed that there would be an exchange of directors between both boards. In the 1979-80 year AHI had exports of $45 million. It

also had established forests in the Northland region which were adjacent to those established in past years by Carter Holt. Carter Holt exports in the same year reached S7SM. For Alex Harvey the purchase of the Carter Holt shares enhanced the company’s desire to take a greater involvement in strong export industries where New Zealand had a marked competitive advantage, the directors said.