New dealer named

Press, 31 January 1984, Page 22

New dealer named

An increase in capita] from $60,000 to $2.5 million was announced yesterday by TKM (New Zealand), Ltd, (TKMNZ), the New Zealand merchant banking subsidiary of the Hong Kong and Shanghai Banking Corporate (Hongkongbank), which has just been granted a foreign exchange dealing authority by the Reserve Bank of New Zealand.

The company will expand its range of services, increase its staff substantially, and relocate to new premises in Wellington’s financial district.

The expansion moves were announced yesterday by the managing director (Mr Stan Hull), who said

that TKMNZ would offer an enhanced range of services particularly to the export/ import and manufacturing sectors of the New Zealand economy.

“We see the ability to deal directly in foreign currencies, and our other proposed activities, as a natural development of the business TKMNZ has been in for many years, in fact since it began to trade in New Zealand as Tozer Kemsley and Millbourn, in 1899,” Mr Hull said. In 1982 the London-based TKM group’s international trade finance division was taken over by Hongkongbank.

Now, reflecting the confidence that Hongkongbank has in the New Zealand economy, Wardley Ltd will acquire its parent’s shareholding in TKMNZ and develop it as a full service merchant bank. This is in line with the policy of concentrating all merchant banking activities under the control of Wardley, which is the principal merchant banking arm of the group. The Overseas

Investment Commission in December last year approved the increase in share capital for TKMNZ, together with the planned expansion in its activities and the acquisition by Wardley of its parent’s shareholding in Wardley Investments (N.Z.), Ltd. This company has until recently acted as Hongkongbank’s holding vehicle for its interests in New Zealand since 1971, and will hold Wardley’s interest in TKMNZ.

TKMNZ’s capital is to be increased from $60,000 to $2.5 million, some of which is to come from retained profits but the greater part being subscribed by Wardley Investments (N.Z.), Ltd.

Mr Hull said that TKMNZ proposes to undertake corporate advisory services, foreign currency dealing, lending, money market, project finance, discretionary fund management, and advisory services in relation to foreign currency debt management. These would be in addition to an expansion of the trade finance activities TKMNZ has traditionally undertaken, he said.