NZI seeks offshore expansion

Press, 16 August 1984, Page 22

NZI seeks offshore expansion

PA Auckland NZI Corporation will sell Eagle Aviation, Ltd, after restructuring it and improving its trading, Mr John Wells, of NZI, said at the NZI annual meeting yesterday. In answer to a shareholder’s question, Mr Wells said the company’s involvement in Eagle was to protect a debt “We have no intention of maintaining a long-term investment. We can’t say it is totally profitable yet but we are pleased with its progress,” he said. Mr Wells is general manager, finance companies division.

To a further question, he said Eagle’s results were not in the company’s annual report “because we feel it is not a major contributor to group earnings”. The chairman, Sir Alan Hellaby, said NZI did not see itself involved in aviation, as evidenced by its withdrawal from Mt Cook Airlines. The same shareholder asked whether NZI would be paying part of a $3.6 million loss which Autocrat Sanyo, Ltd, lists in its annual reuort as being suffered from the trading activities of Access Data.

He asked why there was no mention in the annual report of pending legal pro-

cedures as required under the securities regulations, and asked if the $1.9 million provided for doubtful debts in the accounts was enough. Mr Wells said the Access, Autocrat position was complex and it was inappropriate for him to comment But he said there were no legal procedures pending, only discussions.

In his address to shareholders, Sir Alan said the New Zealand dollar devaluation would bring an increase in the New Zealand dollar value of its net assets of about $6O million. “The value of our overseas earning, when converted to New Zealand dollars, will also grow as a result of devaluation,” Sir Alan said.

The financial year had started well and the improving trend of the 1984 results had been continued into the first quarter of the new financial year. Much of the company’s growth would be outside New Zealand which may involve the need to seek access to the world’s capital markets to finance developments.

“Currently we are studying opportunities which are open to us, and when appropriate we will refer back to shareholders.”