Closing quotes Repco seeks majority stake in A and B

Press, 4 March 1983, Page 10

Closing quotes

Repco seeks majority stake in A and B

The directors of Andrews and Beaven. Ltd. will meet on Monday to discuss the bid by Repco Corporation. Ltd, of Australia, to increase its holding in the Christchurchbased engineering and automotive parts company to 60 per cent. In a statement to the Stock Exchange Association yesterday, the directors said that they would issue a report on Tuesday. Repco bought a 10 per cent stake in Andrews and Beaven in December, offering 125 c a unit for both ordinary and preference shares — 5c above the ruling market price. In the latest offer, for at least 2 million shares, the price is 130 c for each ordinary or preference share — 8c below the ruling price for the ordinary units. The offer for the shares coincided with Andrews and Beaven’s announcing a markedly lower net profit in the six months to December 31 — down 37.9 per cent to $726,859 — and cutting its

dividend rate. An Andrews and Beaven spokesman said yesterday that the Examiner of Commercial Practices had given Repco permission to increase its holding. Andrews and Beaven’s chairman, Mr W. B. Barnes, was quoted yesterday as saying that the directors had “mixed feelings" on the Repco move; that the feeling was that it was probably in the best interests of staff and shareholders.

The board was “relatively relaxed” about the situation and realised that there had to be greater efficiencies introduced into the automatic engineering and spare parts business in New Zealand, he said.

Repco Corporation’s deputy managing director, Mr D. J. McGrath, has confirmed that negotiations have begun with Andrews and Beaven.

Repco Corporation already has a large stake in the New Zealand automobile parts in-

dustry. having increased its holding in MSI Corporation. Ltd. from 24.9 per cent to 60 per cent last year. It also holds about 60 per cent of the share capital in Repco New Zealand, Ltd. There are a number of large shareholders in Andrews and Beaven.

Besides Repco Corporation, Repco New Zealand has about 10 per cent; the private investment company, H. W. Smith, Ltd, has a large holding. resulting from Andrews and Beaven’s acquiring the trading assets of Motor Traders (N.Z.), Ltd; and Bunting and Company, Ltd. holds about 10 per cent of the capital. Mr W. B. Barnes is also the chairman of Bunting. Yesterday 296,280 Andrews and Beaven shares were crossed; 214,556 ordinaries at the bid price of 130 c, 5000 ordinaries at 131 c, 3200 11.5 per cent preference shares at 130 c. and 73,524 16 per cent preference shares, also at 130 c.