Comment on Healing deal

Press, 17 March 1982, Page 28

Comment on Healing deal

PA Wellington The method of acquisition by New Zealand Motor Corportation, Ltd, of 24.9 per cent of the capital of Healing Industries, Ltd, has drawn comment from the Stock Exchange Association. The president (Mr Martin Harriman) said in a staten ment yesterday that the transaction, which was achieved by off-market negotiation rather than by standing in the market, resulted in a large percentage of share-

holders having no opportunity to participate in the 200 c a share offer. "This situation further underlines the desirability of requiring a purchaser of a certain proportion of a company’s capital to stand in the market, for a defined time, accepting such shares as are offered to him at the price paid for the initial acquisition,” Mr Harriman said. “The statutory requirements of the Commerce Act, whereby the Examiner, sub-

ject to a Commission hearing, may set a limit upon the amount of capital one company may acquire in another, place difficulties in translating such a requirement into practice.” He said the question would be discussed at next Tuesday’s executive meeting of the association. Particular attention would be paid to devising a modus operandi which would give “fair and timely notice” to all shareholders of a target company. (Early story, page 30)