Large private stake in Lion sought

Press, 17 November 1981, Page 26

Large private stake in Lion sought

An Auckland businessman, Mr A. D. Myers, chasing a 15 per cent stake in Lion Breweries, Ltd, completed the purchase of about 11 million Lion shares just after lunch yesterday.

Mr Myers then announced that, “In view of the unexpected high level of early acceptances, and the limited time available for shareholders to consider the offer, he now advises that he has decided to accept additional shares up to a total (inclusive of shares already held) of 19.9 per cent of Lion’s capital, at which stage he will withdraw from the market.”

The price remains at 190 c for the ordinary shares, and 205 c for the 10 per cent preference shares.

Yesterday, the sale nationally of 9,220,847 ordinary shares, and 2,619,025 10 p.c. convertible preference shares was reported. Reacting to the bid this morning, Lion Breweries’ chairman (Sir Ralph Thompson) hailed Mr Myers as a long-time acquaintance with

a good knowledge of the liquor trade. In a statement Sir Ralph said Lion ordinary and specified preference shares'were well worth the price Mr Myers had offered. The statement read: “Since 1957 when I became a director I have known Sir Kenneth Myers: I have also known his son, Mr A. D. Myers for a long time. I like them both and respect their commercial skills and judgement. Directly and indirectly they have been intimately associated with the company. They know the liquor industry inside out. “I therefore take the view that before making his offer, Mr A. D. Myers would have satisfied himself that at the very least, the shares are worth that sum. I think the same. If asked my opinion I would say that 1 would not sell but would not hesitate to buy at the price offered by Mr Myers, if tree to do so. Both short and long term they are a good investment.” Mr Myers said: “My grandfather was one of those instrumental in the formation

of New Zealand Breweries in 1924, and in fact Lion Breweries was the name of the family’s Auckland brewery. We continued with our wine/spirit and hotel investments until 1971 — when the latter were sold to Lion as a result of a merger of interests. Since then, we have continued a joint venture company — New Zealand Wines and Spirits, -Ltd, — with Lion, and in June of this year we announced our intention to sell our shareholding in that company to Lion.” My Myers said that although he was aware that the brewing and hotel industry had shown little growth in recent years he was making a long term investment move into a company and industry which he knew and felt comfortable with.

Mr Myers said that an arbitration hearing was to be held early next year to determine the price to be paid by Lion for the NZ Wines and Spirits shares, and therefore he would not be seeking board representation until after the arbitration was completed.