Lion shares trade well

Press, 3 July 1985, Page 35

Lion shares trade well

PA Auckland Lion Breweries’ share sales occupied centre stage on the New Zealand Stock Exchange yesterday. The on-market bid by Tarragon Investments, Ltd (owned by the Lion directors, Mr A. D. Myers and Dr C. J. Fernyhough) for 7.6 million shares at 350 c each got away to a good start but precipitated a flurry of buying and selling which left in its wake a trail of confusion as to motive. At the end of the day, Tarragon had bought a total of 1.5 M Lion shares at its offer price of 350 c. Mr Myers said Tarragon was well pleased with the initial response to the offer, and the day’s accumulation had been rather better than predicted. Mr Myers said that there would be no change in Tarragon’s stance today, and the offer to buy shares at 350 c remained. The broker acting for Tarragon, Jarden and Company, of Wellington, said the offer included an escalation clause. He said it had not been expected to reach the goal quickly, as shareholdings were spread over almost 15,000 shareholders throughout the country. Many of these shareholders, who would be willing sellers at 350 c would need a day or two to complete their selling arrangements, he said. Mr Myers also said the Singaporean shareholder, Tan Sri Chin Tuan, supported the Tarragon offer. It was not likely that the Singaporeans would be sellers. They had declared themselves to be long-term investors, he said. The directors of Lion are expected to make a statement this afternoon after their monthly board meeting. Analysts said today the Tarragon bid had been made on a “cum div” basis. Lion has recommended a final ordinary dividend of 12c a share, payable on September 4, ex dividend on August 19, half of which will be tax-free.