Offer for BNZ Fin.

Press, 2 September 1981, Page 22

Offer for BNZ Fin.

PA Wellington The Bank of New Zealand yesterday made an offer to increase its holding in BNZ Finance Company, Ltd, from 40 per cent to between 60 per cent and 70 per cent. The Bank of New Zealand chairman (Mr L. N. Ross) said the bank was offering to increase its holding in BNZ Finance to not less than 60 per cent nor more than 70 per cent.

The percentages refer to the total BNZ Finance shares on issue, including.those arising from the current cash issue.

The BNZ offer is 400 c for each existing share and 393 c for each new share, the 7c difference reflecting the fact that the new shares will not qualify for the interim dividend to be paid for the halfyear to September 30.

BNZ Finance is a listed company. The parent bank is State-owned. BNZ Finance had derived much benefit from its association with the bank’s name and influence. It was considered that' it would be

of longer term advantage to the bank to acquire a greater interest in the finance company, Mr Ross said. The other trading banks working in New Zealand each had finance company subsidiaries and the closer integration of BNZ Finance into the BNZ Group would enable both entities to combine their resources more effectively and to offer improved facilities to their respective customers, he said. The offer will be subject to obtaining the necessary approvals under the Commerce Act. The directors of BNZ Finance advised the Stock Exchange Association that BNZ Finance shareholders should not sell their shares, and should not sell their rights to the issue. They said an independent valuation of the company’s shares would be made immediately.

When the valuation had been received and the terms of the offer considered, a recommendation would be made to shareholders.