Brierley sells Waitaki stake for profit of $6.6 million

Press, 3 August 1985, Page 22

Brierley sells Waitaki stake for profit of $6.6 million

PA Wellington Brierley Investments, Ltd, has sold its 7.7 per cent holding in Waitaki NZR, Ltd, to Wattie Industries, Ltd, for an estimated profit of more than $6 million. The acquisition, in addition to 7.48 per cent in Waitaki bought off-market, increases Wattie's 24.8 per cent shareholding to 40 per cent, the corporate giant announced to the Stock Exchange yesterday. Meanwhile, BIL reported to the exchange that it had sold 7,382,755 shares in Waitaki at 300 c a share.

BIL picked up the bulk of its holding in a controversial on-market bid for 15 per cent in the meat processor in April. Waitaki then made a large share placement to an unidentified concern as a defensive measure, which led to its shares being suspended from quotation on the Stock Exchange for a

brief period. The concern later turned out to be Perth-based Wesfarmers.

BIL stopped bidding for Waitaki when shares reached 210 c and, assuming all its holding was acquired at that price, BIL made $6,644,480 from the deal at a total cost to Wattie of about $22 million. At 300 c a share BIL achieved a top price because Wattie told the Stock Exchange it had acquired, off market, 14,668,884 shares in Waitaki (15.15 per cent of the issued capital) at an average price a share of 272 c Wattie has Commerce Commission approval to go to 51 per cent. The purchase went through Wattie’s whollyowned subsidiary, Wattie Finance, Ltd, and in order to fund the purchase, it has alloted 4,535,927 ordinary shares in Wattie Industries, Ltd.