Sharebrokers buy Mainstay stake

Press, 13 December 1985, Page 10

Sharebrokers buy Mainstay stake

The Christchurch sharebrokers, Egden, Wignall and Company, have taken a major holding in Mainstay Properties, Ltd. The chairman of Mainstay, Sir Ronald Scott, announced last evening that Egden Wignall had acquired its holding over recent weeks in a series of on and offmarket purchases. The board of Mainstay Properties, Ltd, has also been changed. Directors to leave will be Messrs W. J. Butterfield, who is about to sell his holding to Mainstay, Len Bayliss, the Wellington accountant, and G. S. R. (Scott) Macdonald. Mr John Egden, of the sharebroking firm, will join the board. Details of other board appointments will be released later.

Sir Ronald announced that the role of Mainstay Management, Ltd, would be wound down. Staff of this company would be employed by Mainstay Properties. Sir Ronald said that Mr Butterfield wished to pursue other personal interests with the sale of his stake. Mr Bayliss had already advised the company of a pending conflict of interest which would compel him to retire. Mr Macdonald would not seek re-election with the “clear intention of the company to focus on southern development.”

’’Egden, Wignall and Company were motivated by two factors,” Sir Ronald said. "First, they see the move as adding considerably to the stability of the company’s shareholding. Secondly, with the broadening of the company’s activities, they believe that Mainstay will be seen increasingly as a means of focusing investment in the South Island and Canterbury in particular.” Having established a sound

property base, it was now felt that attention should centre on the employment of assets for the benefit of Mainstay shareholders and the region in which the company lived, Sir Ronald said. Sir Ronald also announced: © A joint venture in which Mainstay will have a majority interest in a new tourist project in Australia, Sea World, at Surfers’ Paradise. This venture, which began operations on Wednesday, would eventually extend its hovercraft services to other parts of Aus-

tralia. This would include a service ■ between Brisbane and the Gold Coast • Mainstay’s new building in Mayoral Drive, Auckland, is “all but complete” and has been leased to First Pacific Insurance, Ltd, whose chairman, Mr Jack Henderson, was well known in Christchurch as a partner in Cooper Henderson Motors, Ltd. The taking of a major holding in a listed company by a sharebroker , is no longer unusual in New Zealand.