New Australian merchant bank

Press, 13 February 1982, Page 20

New Australian merchant bank

PA Canberra The Australian Federal Government has approved a proposal that the Bank of Tokyo and three Australian partners establish a new resource oriented merchant bank.

Announcing the Governments decision, made under Australia’s foreign investment guidelines, the acting Treasurer (Dame Margaret Guilfoyle) said that the proposal represented an "effective partnership between Australian and foreign interests.”

The Australian partners are the State Bank of N.S.W.. the Queensland State Government Insurance Office, and the State Government Insurance Office of Western Australia.

The new merchant bank will be known as 8.0. T. Australia. Ltd.

Senator Guilfoyle said 8.0. T. Australia would be 50 per cent owned by the Bank of Tokyo. Ltd. 20 per cent by the State Bank of N.S.W., 20 per cent by. Queensland State Government Insurance Office and 10 per cent by the West Australian 5.G.1.0. She said “the new merchant bank’s activities will be broadly based, including servicing the financial requirements of Japanese-Aus-tralian trade and investment.”

Senator Guilfoyle said the proposal had been examined against the Government's policy concerning foreign investment in non-bank financial intermediaries.

“For approval, proposals by foreign interests to establish a new non-bank financial institution must demonstrate substantial net economic benefits to Australia or.

where the net economic benefits are small, must involve an effective partnership betw'een Australian interests and the foreign investor in the ownership and control of the company concerned." Senator Guilfoyle said.

As a result of the Government’s approval, the Bank of Tokyo would sell the Bank of New South Wales on commercial terms a 10 per cent shareholding in Partnership Pacific, Ltd, one of Australia's largest merchant banks.

“This will allow the Bank of New South Wales to increase its shareholding in Partnership Pacific, Ltd, to 60 per cent, the ceiling set by the Reserve Bank for a bank’s equity interest in a merchant bank,” Senator Guilfovle said.

Sir Allan Wright, who has been appointed a director of Mair and Company, Ltd, the Christchurch-based importexport house principally involved in processing and marketing New Zealand primary products. Sir Allan was awarded the K.B.E. in the New Year honours list for his work with Federated Farmers. He was national president from 1977 to 1981. Sir Allan, a director of the Rural Bank and Farmers’ Mutual Insurance Group, is also a member of the Government’s special tax task force and deputy chairman of the Lincoln College Council. He is a long-serving member of the New Zealand cricket board of control.