Chase to diversify into breeding

Press, 10 August 1985, Page 23

Chase to diversify into breeding

PAAuckland Chase Corporation, Ltd, is to diversfy its investments further by taking a 25 per cent shareholding in a horse-breeding company, Thoroughbred Holdings, Ltd. Thoroughbred Holdings will soon seek Stock Exchange listing for its shares, with a paid capital of $lO million. There will be no prospectus seeking public investment in the company. Rather the company will seek public listing through existing shareholders. News of Chase’s involvement in the new company was conveyed to shareholders at the annual meeting in Auckland. The company chairman, Mr Colin Reynolds, told the well-attended meeting that the bloodstock industry had

been a goal of Chase two years ago. He said various investment opportunities investigated had not met what Chase believed to be the criteria for success. Mr Reynolds said he could not give further details on the new company at present. The other shareholders were business and bloodstock people. There would be no preferential basis for Chase shareholders to subscribe for shares. Chase did not control the company with its 25 per cent shareholding and the $lO million paid capital was too small for a preference to be given to Chase shareholders. Mr Reynolds said the company would have no investment in land and would have international operations with a major involvement in Australia. He told the meeting that there would be a shake-out in the Auckland property development market in the com-

ing year, with high interest rates, tight money supply, a declining economy and’ a potential for oversupply of space. He said Chase had positioned itself to ensure it would not be greatly affected by the trend. Mr Reynolds said a consistent property sales policy had been maintained. Sufficient projects were sold, producing cash flow to cover the holding and operating costs and increased working capital required. Although that entailed the sale of some good properties, directors had chosen to ensure strong liquidity in the property sector at all’times. He reported that the first four months of trading for Amalgamated Theatres, Ltd, in the present financial year had been ahead of budget. Although some reservations were held about product quality, the company is confident of achieving improved results in the 1985-86 financial year.