Green light for Sanford move

Press, 16 January 1986, Page 20

Green light for Sanford move

The key shareholding group in the listed fishing and export company, Sanford, Ltd, has obtained permission from the Examiner of Commercial Practices to lift its holding to 100 per cent.

The permission goes to the unlisted Auckland importer and exporter of meat, fish, wool and byproducts, Amalgamated Dairies, Ltd. This company’s chairman, Mr W. D. Goodfellow, is also Sanford’s chairman.

The Amalgamated Dairies associate company, Amalgamated Marketing, has among its associates Animal Enterprises, Ltd, which organised the recent export from South Canterbury of live sheep; the N.Z. Semen Export Company,

Ltd; and Cambridge Wools, Ltd.

Commodity Traders N.Z., Ltd, another associated company of Amalgamated Dairies, is also a sizeable shareholder in Sanford’s.

The four biggest shareholders in Sanford’s, according to the latest annual report, are: Amalgamated Dairies (16.5 per cent), the N.Z. Guardian Trust Company, Ltd (12.4 per cent), Commodity Traders (7.7 per cent), and NZI Corporation, Ltd (6.7 per cent).

Mr Goodfellow, the chairman, holds almost 1.2 per cent of Sanford’s shares. Thus, if Amalgamated Dairies continues with a bid, it will start with a 25 per cent holding. The move would be regarded as a friendly bid. It is believed that the object is to increase the key shareholders’ control, and fence off raiders. The object it is believed, is not

to delist the company; thus at least 20 per cent of the holding will be left in public hands. Sanford made an after-tax profit of $8,796,000 in the year ended August 31, 1985, on sales of $72,641,000. Shareholders’ funds were $26,236,000.

Technigroup Commercial Securities, Ltd, the Auckland investment company was given approval by the Examiner to acquire up to 50 per cent of Technigroup Holdings, Ltd. Commercial Securities and its major shareholder, Emus Holdings, Ltd, between them held 51 per cent of Technigroup when it was floated last year. Technigroup became the umbrella for a number of commercial securities purchases of firms in office equipment, office furniture, and airconditioning. Technigroup was listed in October, ana that month took over the firm which distributed Minolta photo-copiers in New Zealand.