Huttons sells NZ division

Press, 19 December 1981, Page 21

Huttons sells NZ division

PA Melbourne The troubled meat processor, Huttons, Ltd, continued to press ahead with a huge rationalisation scheme with the announcement of the sale of J. C. Hutton (New Zealand), Ltd. for $7.5m. Huttons' managing director (Mr R. J. Patrick) said that the move was taken with reluctance, “but the quick cash was the bottom line."

Hutton. Ltd, the target of an aborted takeover offer from Industrial Equity, Ltd, earlier this year, lost $2.6m in the year ended July 3. The company lost sl.7m in the previous year. Mr Patrick said that the sale of the New Zealand Group to the Gear Meat Company of Wellington, would be settled by the end of January.

The New Zealand subsidiary posted a net profit of SI.2M in the latest year.

However, Mr Patrick, who joined the board in October as a nominee of lEL, said high New Zealand taxes and an unfavourable exchange rate were working against the New Zealand operations.

The sale would also reduce the group’s interest bill. “The New Zealand operations have become increasingly independent over the years and the sale will enable a greater concentration of resources on stabilising and expanding the profitable areas of the group’s business in Australia.” he said.

Huttons has already centralised its smailgoods operations in Sydney and Brisbane. closing down smallgoods production in Melbourne.

The company yesterday began advertising for the sale of its abattoir at Kyneton, Victoria; the asking price is $2.3M. Conquip Ltd, an whollyowned subsidiary of lEL. took up 27.6 per cent of Huttons last June. In October, the National Companies and Securities Commission sought orders in the Supreme Court of NSW to force lEL to make a full offer for the remaining shares at 83c a share.

In its disclosure of the New Zealand sale to stock exchanges, Huttons said that there were no known common shareholders or directors between Huttons and Gear Meat. However, Gear Meat was 49.33 per cent owned by East Coast Consolidated. Ltd, which was jointly owned by Brierley Investments. Ltd. and the Hawkes Bay Farmers Meat Company. Ltd.

R. A. Brierley and W. M. Loewenthal were directors of Brierley Investments as well as directors of Huttons, Ltd, and J. C. Hutton (New Zealand), Ltd.

Brierley Investments held no shares in Huttons, Ltd. but had a substantial indirct beneficial interest in lEL.