Briefs

Press, 9 November 1984, Page 16

Briefs

Prime-rate cut Falling interest rates have overshadowed investor joy at President Reagan’s re-election as major banks cut their prime lending rates to the lowest ■level in more than six months. Major banks, including Chase and Citicorp, cut the prime rate to 11.75 per cent from 12 per cent, the first reduction in the prime rate below 12 per cent since April 4. Some economists predicted that further cuts were imminent. The interest rate decline led the dollar to lower levels on foreign exchanges and boosted the price of gold and silver. On Wall Street, profit-taking dominated trading and stock prices declined an average ten points through midday. New GDP New Zealand’s seasonally adjusted gross domestic product for the three months to June 30 was 1.5 per cent higher than for the March quarter, according to a new set of statistics published by the Department of Statistics. The series surveys GDP in constant prices and is otherwise known as “real GDP.” It is a statistical estimate of the total volume of goods and services 5 reduced in the economy, une’s quarterly increase of 1.5 per cent compares with increases of 3.8 per cent (March) and 1.1 per cent (December) during the two previous quarters. On an.annual basis, real GDP increased by 6 per cent in the year to June, compared with 3 per cent in the year to March. Hotel sold Two Queenstown businessmen have bought the Southern Cross Hotel, Dunedin, from Brierley Investments, Ltd, for an undisclosed sum. This is the second time the hotel has changed hands within two months. The new owners are Mr Ralph Brown and Mr Earl Hagman.

Kingsgate purchase The Kingsgate International Corporation, Ltd, has completed an agreement to acquire land and buildings adjacent to Hyatt Kingsgate Auckland, including car-parks and an office building adjoining the hotel in Princes Street. The other properties are the neighbouring Arundel Private Hotel, in Waterloo Quadrant, and Eden Hall apartments. The properties are owned by Auckland Intercontinental Properties Holdings, Ltd. All of the shares in AIPH will be bought for cash through a wholly owned subsidiary of Kingsgate International. Philips head Philips Electrical Industries of New Zealand, Ltd, has named the company’s finance director, Mr R. E. Ramsay, as managing director, pending the naming of a new chief executive to succeed Mr Hugo Schut, who died In a recent aircraft accident. Goliath mining The $3.5M public float by Goliath Mining Company, Ltd, has been fully subscribed. Mr M. B. D. Jellie, one of the directors, said that, “Things are ticking over nicely but we’re into the hard part now — making it all pay well.” A new floating screen was under construction at the Hatters Gully claim and was expected to be in operation within the next fornight, and the SI.3M excavator bought by the company earlier this year, was not working to expectations after some initial problems. “Gold recovery is meeting our predictions: we are pretty satisfied,” Mr Jellie said. Nathan Finance Nathan Finance, Ltd, the wholly owned finance subsidiary of the L. D. Nathan group, lifted tax-paid net profit 73.5 per cent to $880,535 in the year ended August 31. Provision for tax was $124,754 ($412,072 in 1983). Total assets grew 64.1 per cent from $23.7M to $38.9M.

Radio Pacific Radio Pacific, Ltd, has foreshadowed its first dividend to shareholders after reporting a 124 per cent higher interim net profit of $252,130 for the six months to September 30. The directors say the result is ahead of forecast and as forward sales are “excellent" a maiden dividend will be paid at the end of this financial year. The unaudited result compares with last year's halfyear earnings of $112,463 and a $302,434 profit in the full year to March. Smith and Smith

Most shareholders of the building-supply chain, Smith and Smith, have accepted a $45.3M take-over offer from Alex Harvey Industries. AHI has- announced that its 870 c-a-share share offer, dated October 22. has been accepted by holders of 4,834,624 Smith and Smith shares (92.83 per cent of the retail chain’s issued capital). The offer is now unconditional. Acceptors will be paid 28 days after the consent of the Commerce Commission has been gazetted. That is likely to be early next month, and the take-over will take effect, then. The offer remains open to those Smith and Smith shareholders who have not yet accepted the AHI bid. UDC profit UDC Group Holdings, Ltd. the wholly owned financehouse subsidiary of ANZ Banking Group (New Zealand), Ltd. earned an audited, tax-paid profit for the year ended September 30 of $8,305,000, after providing for taxation of $7,450,000. The current profit compares to last year’s trading profit of $8,095,000 and shows a return on average shareholders funds of 21.77 per cent. Juice merger Two long-established Nelson fruit-juice processers, Robinson Brothers, and Tasman BayFruit Juices, have merged to combine assets of nearly SIM. A subsidiary of the merged company, Kiwijuice (NZ) Co.. Nelson, will handle exports. Both Robinson Brothers and Tasman Bay will continue to trade under their brand names and will retain separate identities.