Allflex welcomes Leyland

Press, 12 November 1985, Page 26

Allflex welcomes Leyland

PA Wellington Allflex Holdings, Ltd, has rejected an association with Unity Group, Ltd, but welcomed one with Leyland Capital, Ltd. Allflex yesterday lifted the don’t sell notice issued last week after a bid for 19.9 per

cent of the company was made by Unity. However, Allflex directors said discussions with Unity failed to convince them that there were benefits to Allflex from an association. Allflex said its interim results to September 30 would

reflect the negative impact of exchange rates on profitability. However, the company was maintaining its high commitment to investment in marketing and research and development into new products. They added they were aware

that Leyland Capital had been purchasing shares in Allflex through Jarden and Company and that it intended to acquire a 19.9 per cent shareholding in Allflex. The board had held discussions with Leyland and was confident of the benefits of a relationship between the companies. Leyland was managed and part-owned by NZI Corp, Ltd, and Allflex would, therefore, have access to NZl’s network of services within New Zealand and overseas. In addition, Leyland’s investment strategy of taking positions in companies might lead to complementary business activities for Allflex. Allflex said its directors supported the purchase of shares oy Leyland and intended to appoint a Leyland representative to the board of Allflex in due course. Leyland Capital said it had purchased 14.2 per cent of the capital of Allflex. It would purchase up to 20 per cent of the ordinary capital in due course. Westpac MF up Westpac Merchant Finance, Ltd, now wholly owned by Westpac Banking Corporation, has increased its profit 44.9 per cent to $7,005,000 in the year to September 30. The result was after providing $37,000 less for tax at $3,010,000 and includes a writedown of $1,031,000 (before tax) on Government securities held for trading purposes ($1,569,000), because of increases in Government stock interest rates. Total assets increased 80 per cent to $753M.