Repco may add to MSI stake

Press, 18 November 1981, Page 26

Repco may add to MSI stake

PA Auckland The Examiner of Commercial Practices and the Overseas Investment Commission have given Repco, Ltd, of Australia, permission to increase its interest in MSI Corporation, Ltd, to 60 per cent. Repco acquired a 24.9 per cent stake in MSI in September after a sharemarket buying raid on the company by the Christchurch operation of H. W. Smith, Ltd. In an open market rescue operation, Repco acquired the shares held by Smith and others to end up with its shareholding. However, it is unclear at this stage to what extent Repco intends to increase its shareholding in MSI. The chairman of the Mel-bourne-based Repco is currently overseas and the company has been unable to

advise MSI executives of its future plans. Under the terms of the approvals, Repco has 12 months in which to increase its shareholding. An MSI spokesman said yesterday: “We don’t have the answer to the question of how far Repco plan to go." Last month the chairman of MSI (Mr T. A. R. Gibbs) said in his annual review that the participation of Repco would provide added benefits to MSI and that a very close and friendly trading relationship had existed between the two companies for many years. Their merchandising and trading activities in Australia and New Zealand were compatible, and represented a foundation for developments under the Closer Economic Relations Plan, he said.