Elders makes big Yates acquisition
PA Auckland Elders IXL, Ltd, for an outlay of $17.3 million, has bought 19.9 per cent of the issued share capital of Yates Corporation, Ltd. The vendor of the Yates shares was UEB Industries, Ltd.
The investment into Yates is Elders’ second major purchase of a substantial interest in a listed New Zealand company. In February, Elders paid about $68.6 million for 22 million shares in Goodman Group. That holding is about 21 per cent of the Goodman Group issued capital. Elders used its whollyowned Wellington subsidiary C. G. Prevost and Company, Ltd, as the vehicle for the Yates purchase. Prevost is also shown in the Goodman annual report as the holder of 22 million of its shares.
The chairman of Yates, Mr C. J. Kfeppel, said yesterday the purchase had been completed after close and cordial discussions be-
tween the three companies. The managing director of the company, Mr P. S. Yates, said the link with Elders was a positive move which complements Yates’ outward-looking growth strategy, particularly considering the implications for trans-Tasman trade under C.E.R. and Yates’ commitment to exports. Yates overseas sales, valued at more than $5O million, account for more than 20 per-cent of sales. Mr Yates said Elders introduced a large and new dimension with its experience in international commodity trading, rural financing and other pastoral activities.
Elders’ coverage of rural Australia with farm supply stores, opens up many potential opportunities for New Zealand-sourced farm inputs, particularly those of a proprietary nature, he said.
Mr J. D. Elliott, the managing director of Elders.
said he looked forward to a close working relationship between the two companies. Mr Yates said that two Elders’ executives, Mr Elliott and Mr N. B. Davey, would be invited to join the Yates board.
The managing director of UEB Industries, Ltd, Mr G. R. J. Tedcastle, said the decision to sell was reached after a complete re-evalua-tion of the company’s longterm investment strategy. Mr Tedcastle said UEB had achieved a satisfactory capital gain out of the sale and that the total proceeds would be channelled into further expansion.
Elders makes big Yates acquisition
Press, 19 September 1984, Page 29
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