McConnell gains 25%

Press, 12 November 1985, Page 26

McConnell gains 25%

McConnell Dowell Corp, Ltd, has announced that it has acquired a 25 per cent stake in City Realties, Ltd, for S2BM - a move which indirectly increases its role in National Insurance. Most of McConnell Dowell’s acquisition came from Brierley Investments Ltd, which said it had sold its 19 per cent stake in City Realties at 85c a share —20 c above yesterday’s closing price — for a total of $21.42M. The directors of McConnell

Dowell said the acquisition of 33.2 M shares in City Realties was subject to Commerce Commission approval. McConnell Dowell also holds 15.3 per cent of the capital of National Insurance Company of New Zealand, Ltd, while City Realties, Ltd, holds 25 per cent of the equity of that company. In turn, National Insurance is a big minority shareholder in City Realties. A successful take-over of Acrow Australia, Ltd, was

completed this year, resulting in McConnell Dowell acquiring 91 per cent of the capital. Subject to ratification at the annual meeting of Acrow on November 21, Acrow would become McConnell Dowell Group, Ltd; the existing 50c shares would be split into 25c shares; a new issue of 25c shares would be made at a price of 140 c a share (Aust.) to raise sAustil.6M. McDonnell Dowell would take up enough shares to. maintain a 51 per cent ownership.