10% of Lion sought

Press, 2 July 1985, Page 26

10% of Lion sought

Mr Douglas Myers, the biggest shareholder in Lion Breweries, is buying more shares.

In a press statement last evening, Tarragon Investments, Ltd, which is owned beneficially entirely by Mr Myers and by Mr C. J. Femhough, announced it would stand in the market today with a limited offer to buy 10 per cent of the capital of Lion Breweries. The offer is being made through the Wellington sharebroker, Jarden and Company. Mr Myers is listed in the last annual report of Lion

Breweries as owning 18.42 per cent of the company’s capital. The next biggest shareholder is Westpac Nominees (N.Z.), Ltd, with 18.41 per cent. The price offered is $3.50 an ordinary share. This compares with an average price of $2.25 during the first quarter of this year, and a price of $3.05 following the recent 1985 profit announcement.

Yesterday, Lion ordinary shares traded at $3.05. At his first buying campaign for the shares, in late 1981, the shares were trading about 190 c.

Mr Fernhough, an Auckland lawyer, has a long and close association with the Myers family. He is a director of Lion Breweries, but was listed in the annual report as holding only 8050 shares.

Mr Myers, the managing director of Lion, has instituted a policy of de-cen-tralising management and trimming it to increase efficiency.

Last month, Lion announced an 89 per cent lift in profits to $43.8M for the year ended March 31. Salos were $746M, compared with S64IM the previous year.