Video future for Tourist Corp?

Press, 20 August 1983, Page 20

Video future for Tourist Corp?

By

NEVIN TOPP

; Tourist Corporation of Fiji Holdings, Ltd, may head in a new direction — video games — if shareholders accept a reconstruction plan to be put to an extraordinary meeting in Rotorua on Tuesday. In the meantime, however, an unknown buyer is believed to have obtained an option to acquire the 60.6 per cent of Tourist Corporation’s capital held by Mr R. W. F. Gurnsey, a Rotorua timber merchant, who has interests in Fiji. The reconstruction plan to be put to the extraordinary meeting is apparently central to the new major shareholder’s plans for the future of Tourist Corporation. The directors of Tourist Corporation have proposed to write down the authorised 2 million 100 c

shares to 10c shares, leaving 600,000 shares on issue, and to increase the authorised capital to SSM in 50 million 10c shares. This would allow the directors to issue up to 49.4 million shares, and in effect considerably dilute present holdings and provide for an opportunity for “backdoor” listing. The New Zealand sharemarket was surprised earlier this month when Merchant Funds, Ltd, of Auckland, announced it was seeking 115,000 shares in Tourist Corporation of Fiji Holdings at 35c each, because the Rotorua-based firm is virtually. a shell company, having practically

The chairman of Merchant Funds, Mr R. B. Wilson, said from Auckland yesterday that the company proposed to make Tourist Corporation into New

Zealand’s first listed video films and games company. The final count for the offer of 115,000 shares in Tourist Corporation to raise Merchant Funds holding to 19.9 per cent was still being made, but Merchant Funds was confident of achieving that figure, he said., However, Merchant Funds may be locked out of changing the direction of Tourist Corporation by the unknown buyer if the recon-

struction plan proceeds, although the special resolution writing down the share capital to 10c units requires 75 per cent approval from shareholders. Included in the latest Tourist Corporation accounts are an extraordinary loss of $263,000 arising from writing down the shares held in Claremont Properties (formerly Tourist Corporation of Fiji, Ltd, the Fijian hotel company) from $264,000 to $lOOO. The only asset is a cash of

$258, and after expenses the net loss is $3467 ($4270 previously). “ Mr Martin said that the' Fijian company had sold one of its hotels and the sale of two further, hotels were being negotiated, subject to the approval of the Australian and Fijian Reserve Banks. Mr Wilson said Merchant Funds was the first investment by Cascade Exploration, Ltd, which held 40 per cent. He was the chairman of both companies. Cascade is a mineral exploration company that has been dormant for about five years, but now intends to invest in other unlisted companies.