U.E.B. expands

Press, 8 January 1983, Page 15

U.E.B. expands

NZPA Canberra The Australian Government has approved a foreign investment proposal by U.E.B. Industries (Australia) Pty, Ltd. the New Zealandowned subsidiary of U.E.B. Industries. Ltd, to buy a 50 per cent interest in Hycraft Carpets Pty, Ltd. Hycraft is a major, Syd-ney-based manufacturer of woollen and synthetic carpets and carpet yarns. It is wholly owned by Kinnears, Ltd. a listed Australian company. making rope, cordage, twine, and garden products. Consideration for the sale was $5.5 million. In a statement, the Australian Treasurer. Mr John Howard, said the proposal came within the scope of the Foreign Takeovers Act and had been examined to ensure it was not against the national interest. “Since there is a high level of foreign ownership and control in the carpet manufacturing industry, the proposal needed to demonstrate significant economic benefits or significant Australian equity participation, or both, before approval was granted." The proposal would provide economic benefits by widening Hycraft’s market opportunities, particularly in New Zealand, and enabling a fuller use of Hycraft’s manufacturing capacity, he said. It was devised partly with a view to taking advantage of the trading opportunities for carpet opening up under the Closer Economic Relations agreement (C.E.R.) be-

tween Australia and New Zealand. The Government, had noted that control of the business would be shared between U.E.B. and Kinnears. and that 50 per cent Australian equity would be retained, Mr Howard said.

Kinnears said the agreement had become unconditional on Wednesday.