Anti-apartheid move opposed

Press, 14 November 1981, Page 21

Anti-apartheid move opposed

PA Wellington The directors of New Zealand South British Group. Ltd will fight the move by some shareholders to quit its financial links with South Africa. The directors said in a message to shareholders that to withdraw the 25 per cent holding in Guardian National Insurance — which works in South Africa — would not be in the interests of the company. Anti-apartheid shareholders have forced an extraordinary general meeting of the company — New Zealand's third-largest — for a vote on the issue. The directors. urging shareholders to return proxy forms promptly, said one of the main reasons for retain-

ing the holding in South Africa was the heavy discount on the financial rand — the currency used for sending funds from South Africa. “At present this rate is approximately 28 per cent of the full rand value and upon any realisation the funds received overseas would be discounted by that rate,” the directors said. “It is estimated the discount would be approximately $3 million and, in the directors’ view at this time, this would be a totally unacceptable loss to ask shareholders to bear.” The Presbyterian Church earlier this week said it would withdraw its investments with the insurance group if it retained its South African connection.