Partial bid for A.H.I.

Press, 2 April 1985, Page 34

Partial bid for A.H.I.

PA Wellington The directors of N.Z. Forest Products, Ltd, (N.Z.F.P.) announced yesterday that the company had taken steps to acquire up to 10 per cent of the shares of Alex Harvey Industries, Ltd, (A.H.1.). N.Z.F.P. is offering 365 c, the same price as Carter Holt Holdings, Ltd, which has launched a full takeover bid. The chairman of N.Z.F.P., Mr L. M. Papps, and managing director, Mr W. A. Hunt, said in a joint statement that the purpose of the move was to take a position of some influence in the

affairs of a large, valued customer of N.Z.F.P.’s paper products in view of an invitation to be made by Carter Holt Holdings, Ltd, to A.H.I. shareholders. Further reasons behind N.Z.F.P.’s action were largely the same as those advanced by Carter Holt, namely business areas of current mutual interest including forestry, wood and building products, packaging and retail trading. The statement said that N.Z.F.P. had enjoyed a close relationship with both A.H.I. and Carter Holt for many years and this action should have no adverse effect on these associations. Mr Hunt said that at the close of business the company was half way to its target of 10 per cent of A.H.I. The offer had proceeded well, he said. The company would continue to stand in the market today to try to reach its goal of 15.1 million shares. Initially market reaction was slow but when it became apparent that the cash offer by N.Z.F.P. was attractive then the market began to respond, Mr Hunt said.