Ra Ora shares issued at 50c premium

Press, 20 August 1983, Page 20

Ra Ora shares issued at 50c premium

The public issue of Ra Ora Stud, Ltd, will be 9 million 50c shares at a premium of 50c, the prosKctus shows. Half the numr (4,500,000 shares) has been reserved for subscription by the estate of the late Sir Woolf Fisher. Of the remainder, up to 3,375,000 shares have been reserved by the brokers on a “firm” basis, for allocation to clients; the balance will form a public pool of 1,125,000 shares available for general subscription. Applications must be for a minimum of 200 shares, and thereafter in multiples of 100. The company has an

agreement to purchase the original property from the estate for $1,500,000. It has already purchased an adjoining property for $1,220,000. The total area is 142 hectares.

The company has acquired from the estate bloodstock to the value of $4,341,500. The consideration is $2,170,750 plus a share of proceeds of sales to be paid to the Estate for a four-year period. The basis of the payment will be a sum equivalent to 10 per cent of the proceeds of: • Service fees received by the company from stallion interests sold by the Estate to the company.

• The proceeds of sale of any progeny of mares or fillies sold by the Estate to the company. • The proceeds of sale of any bloodstock or interest therein sold by the Estate to the company. The payment only applies to income derived from interests sold by the Estate to the company.

The prospectus contains a schedule of the bloodstock which has been acquired from the Estate. This includes 53 broodmares, seven racehorses, 25 foals, and three resident stallions; Imposing (halfowned), Aythorpe (17-40ths) and First Mint (half-owned),

also five shares in Crested Wave, two in the Expatriate, one in Sir Tristam, and one in Dedicated Rullah.

The managing director of Ra Ora Stud, Ltd, Mr G. C. M. Jenkins, says in the prospectus that it would be unrealistic to forecast the level of income in the first year, as this would depend on auction prices. Also some of the best fillies are likely to be retained to build up the stud.

“To give some indication of the potential level of income from the yearling sales, the aggregate for Ra Ora in 1983 was $541,000. This total includes the interest of Freyer Bloodstock

Company (N.Z.) Ltd, in six yearlings, amounting to $102,250,” Mr Jenkins says. The accounting policies to be adopted by the company will be annual independent valuations, together with the establishment of a Bloodstock Valuation Fluctuation Reserve. Breeding stock will be carried in the books at 80 per cent of annual valuation, and progeny held for sale will be valued on the basis of the value of the appropriate service fee.

For taxation purposes, bloodstock will be valued on the lowest permissible basis acceptable to the Inland Revenue Department.