N.Z. Equ. conversion

Press, 24 October 1984, Page 29

N.Z. Equ. conversion

PA - Auckland New Zealand Equities plans to convert the 50,000 $2 preference shares it inherited from FarrierWaimak into ordinary scrip on the basis of two ordinaries for three preference shares.

The conversion will increase issued capital to 1,233,384 50c ordinary shares from 1.2 M. The 5.75 per cent preference shares will be cancelled after conversion. The chairman, Mr Avon Carpenter, says in his annual review Jhat the

scheme provides a fair conversion offer. Terras of the conversion were settled after a long investigation by accounting firm Coopers and Lybrand, whose spokesman says the offer is fair and reasonable. Of the group’s prospects, Mr Carpenter says the board “is very much aware that the financial services and Investment banking area has become almost fashionable of recent times, with a real danger that the marketplace could be seen to be oversupplied.” NZ Equities would approach all investment proposals with caution, with the aim of secur-

ing long-term benefits from interests in well-founded projects. The balance sheet of NZ Equities has changed as much as the group has over the last year from a low-profile reading contractor to an investment house. The group now has no fixed assets or goodwill in its books. Its $1,873,898 of funds are mostly in short-term invest-, ments ($1,800,826), with the balance in receivables ($10,630) and equity investments ($62,442 cost; $78,040 market). Shareholders’ funds stood at $1,468,773 on June 30, and current liabilities $405,125.