Goodman backs offer

Press, 28 January 1986, Page 22

Goodman backs offer

By

SIMON LOUISSON

in Wellington

The Goodman Group has mailed to its shareholders a recommendation of acceptance of the Fielder Holdings (New Zealand), Ltd, takeover offer.

The document was intended to be mailed with the Fielder offer but was delayed because the profit forecasts Included could have caused legal problems in Australia. The acceptance document, dated January 16, has little to add to the press release sent to New Zealand media that day. It Includes a profit prediction of SI3SM for the merged

group. The Australian take-over code forbids profit forecasts unless special permission is granted by the National Companies and Securities Commission.

The Goodman acceptance documents were not released to the media in order to “observe some degree of cooperation with the sensitivities of the Australian authorities,” according to Goodman’s assistant to the chairman, Mr Barney Sundstrum. Allied Mill, the third party to the merger proposal, “expressed disquiet” to Goodman that the profit figure of the merged group and itself was released to the New Zealand

media last week. The acceptance documents include a profit forecast for Allied of sAust32.7M for the year ended August 31, 1986. Goodman directors note that they intend to accept the Fielder offer in respect of their 14.3 per cent Allied shareholding, even thoughthis conflicts with the recommendation of the independent directors of Allied.

The Goodman directors acknowledge that the Fielder offer, valuing Goodman shares at 442 c, is less than would be commanded in a normal take-over, but they are confident the merger presents the opportunity for considerable growth benefits.