AIC interests to subsidiary

Press, 13 April 1985, Page 24

AIC interests to subsidiary

PA Wellington The Australasia Investment Company (AIC) will sell about SSOM worth of commercial interests to its 75 per cent owned subsidiary, the listed company, AIC Finance, Ltd, in exchange for shares. AIC said in a statement that it would sell all its interests, at book value, in AIC International Ltd (formerly International Harvester of N.Z. Ltd), which has its headquarters in Christchurch, AIC Equities Australia Ltd, N.Z. Heritage Park, Ltd, and AIC Properties, Ltd. The sale is effective from March 31, subject to Overseas Investment Commission consent and the approval of shareholders of AIC Finance Ltd at a special general meeting.

After these moves it is expected that earnings per share will be in excess of that forecast in the prospectus for the public issue in 1984. Announcing the move, the managing director of AIC, Mr Rod Worn, said the integration of the companies provided the basis for a very strong and profitable investment banking group.

Included in the package is a 10 storey office building in Symonds Street, Auckland, which is under development and will be known as AIC House. Also included are the companies’ Australian interests which have developed rapidly and are seen as vitally important to the development of an Australasian presence.

After the re-arrangement, Mr Worn will act as a director and chief executive of AIC Finance Ltd while Mr Graeme Wright will continue as managing director of finance operations.