Carter Holt-AHI bid for Henderson, Pollard

Press, 23 September 1983, Page 8

Carter Holt-AHI bid for Henderson, Pollard

PA Wellington The directors of Henderson and Pollard, Ltd, will meet today to consider the combined take-over bid by Alex Harvey Industries, Ltd, and Carter Holt Holdings, Ltd, which was made yesterday. In the meantime, the Henderson and Pollard directors have issued a “don’t sell” warning to shareholders on the offer of 315 c cash a share. Henderson and Pollard shares closed at 270 c on Wednesday. In a statement to the New Zealand Stock Exchange yesterday, Alex Harvey (AHI) and Carter Holt said that AHI would sell its 23 Ejr cent stake in Carter olt on the open market. Carter Holt would then bid for full control of Henderson and Pollard, and, if successful, sell half to AHI. The deal needs the approval of the Overseas Investment Commission because AHI is more than 50 per cent-owned by ACI International, Ltd, of Australia.

The two companies said there had been a significant change in their relationships, which the directors considered would add to the

commercial strength of both.

“Alex Harvey Industries has held a 23 per cent stake in Carter Holt since acquir-

ing its interest following the abortive Fletcher (Holdings) bid for Carter Holt during 1980,” the statement said. The directors said that to develop a better relationship between the two companies in selected projects it has been decided that AHI would dispose of its minority equity interest in Carter Holt to the market at large through an agreement which would ensure that the shares were available to the sharemarket at a price and in a manner that the current value of shares would not be affected.

The directors of both companies were satisfied with the existing joint venture in CTP and considered that by the joint ownership of Henderson and Pollard, it would enable both companies to develop into selected projects together where individually each may have found such endeavours impractical. The new policy of joint development would also help the significant investment each company had made in establishing exotic forests in Northland when combined with the holdings of Henderson and Pollard in Auckland and Northland.

Henderson and Pollard makes a range of timber products and trades as sawmillers and timber merchants. The company owns about 6300 ha of forest land, mainly in the North Island. Two directors of Carter Holt, Messrs K. F. L. Carter and R. H. A. Carter, are also on the Henderson and Pollard board. Mr R. H. A. Carter is also on the AHI board. Carter Holt, which has diversified timber-based activities into fishing and transport, has progressed since successfully defending a take-over bid by premerger Fletcher Holdings, Ltd, in 1980. Since then, it acquired its stake in Henderson and Pollard, as well as the controlling interest in Canterbury Timber Products, Ltd.

On a market capitalisation basis at the end of May this year, AHI was ranked New Zealand’s sixth-biggest company and Carter Holt was tenth.

Top officials of Fisher and Paykel, Ltd, which has a 43.8 per Cent stake in

Henderson and Pollard would not comment on the bid yesterday. Carter Holt’s joint managing director, Mr R. H. A. Carter, said he hoped that everybody saw the bid as a positive move. “It is quite an understandable thing that a change from a minority equity into a more positive relationship is logical for AHI.” The release of AHl’s 23 per cent share of Carter Holt would also allow the public to buy more of Carter Holt’s highperforming shares. “There has always been a bit of a problem with a shortage of scrip. Maybe that is one of the things that has held the value up,” he said.