QResorts link with Rainbow

Press, 1 July 1985, Page 28

QResorts link with Rainbow

The Rainbow Corporation, Ltd, of Auckland, is taking 20 per cent of the capital of the recently formed Queenstown Resorts, Ltd. The price is an issue of IM ordinary shares in Rainbow at $1.50 each.

At a special general meeting of Queenstown Resorts at Queenstown on Saturday morning, the transaction was approved. The shareholders also accepted a motion to allow Queenstown Resorts directors to issue up to 5M ordinary shares of 40 cents each at a 10 cent premium to acquire assets for the company. The issue was approved for the recently announced purchase of lease contracts and the operating assets of the Lakeland Regency Hotel in Queenstown and the Chateau Regency in Christchurch. The chairman of Queenstown Resorts, Mr Trevor Stalker, said: “Rainbow Corporation’s proven performance

and market dominance in the allied leisure industry will assist Queenstown Resorts in pursuing and achieving its longer-term objectives.” Although initially Queenstown would be the main focus for Queenstown Resorts the longer-term aim was to establish the company as a force in the N.Z. tourist industry.

The managing director of Rainbow Corporation, Mr Craig Heatley, who has been, invited to join the board of Queenstown Resorts, said that' he regarded Rainbow’s latest’ investment as a first step into,’ the growing tourism market. ■ "Rainbow Corporation has ■ earmarked the N.Z. tourist in-1 dustry as one with better than average prospects over the 1 next decade. We intend to place Rainbow Corporation in a position of strength to enable us to substantially influence the development of this industry,” said Mr Healtey.