Ceramco stake in Atlas

Press, 20 November 1982, Page 21

Ceramco stake in Atlas

PA I Auckland In lan off-market deal wortte about $828,000, Ceraniico yesterday grabbed a 10 pier cent holding in Atlas Corporation. Certamco told the Stock Exchange that it had bought for cash, through an Auckland (sharebroker, 690,000 shares!in Atlas at 120 c each. The I shares bought by Ceramco retain the right to subscribe to the one-for-four issue by Atlas at 50c a share plus a) 50c premium, which was teased on November 5 holdings. The extra shares will cost Ceramd) a further $172,500 and bring its total outlay for a 10 pen- cent stake in Atlas to $1,00Q,500. Ceramco said it would take tip the entitlement to retain its 10 per cent holding.l ’ '

Market trading in Atlas shares yesterday saw only 1600 units crossed at a last sale price of 105 c each. The last time sales were reported at 120 c was on October 28. Ceramco said it had the approval of the Examiner of Commercial Practices to buy up to 35 per cent of Atlas, but did not necessarily intend now to go beyond 10 per cent. Another 15 per cent at near present market prices would cost Ceramco $1.5 million more. Ceramco said it had made the investment as part of its programme of becoming involved with high-growth industries. It was.an opportunity to share in growth that Atlas expected to enjoy in the fields of consumer and industrial electronics. The chairman of Atlas, Mr

C. A. Pearson, said that he had not yet had time to give the development the thought it deserved. The Atlas directors had not had any approach from the Ceramco board, he said, but he would not expect any objection to Ceramco’s involvement. Mr Pearson said there have been past associations with the two companies “in a number of trading areas.” The substantial financial involvement of Ceramco could be compatible with, and complementary to, Atlas in many areas, he said, and there could be advantages to both companies. Atlas has about $7.4 million in carried forward tax losses, and Mr Pearson said that these would be kept intact for Atlas Majestic shareholders.