Renouf to join with Ariadne

Press, 13 March 1986, Page 26

Renouf to join with Ariadne

PA Wellington Wellington merchant banker, Renouf Corporation, Ltd, will join the big league of investment companies with the planned part-merger with Ariadne Australia, Ltd, announced yesterday. The merger will boost Renouf Corporation’s market capitalisation to about $254M, and place it just within the top 20 companies in New Zealand.

From this base, Renouf Corporation intends a thrust into the Australian and European markets this year. “We are going forward in an active entrepreneurial role. Renouf Corporation will be the same as Brierley and the rest of them,” the chairman, Mr Frank Renouf, said yesterday. Subject to the approval of shareholders, Renouf Corporation will allot 42M ordinary 50c shares to Ariadne and its associates in consideration of the purchase of 31.5 M shares in R. and W. Hellaby, Ltd. The allotment represents 51 per cent of Renouf Corporation’s new issued capital.

Ariadne is a Brisbanebased investment house, chaired by the ex-Brierley executive and former New Zealand hockey star Mr Bruce Judge. It owns 45 per cent of the Dunedin-based Hellaby, once a meat company but now a diversified holding

company. Mr Renouf will go to Europe on April 7, to meet merchant bankers, brokers, and friends.

The executive director of the Renouf Corporation, Mr Michael Cashin, said the move would give the firm a presence in Europe, from

London initially, to expand the company’s dealings in international securities. Mr Cashin said Renouf Corporation had been looking at a merger that would offer it higher cash flow and earnings. Ariadne also offered quality in assets andTnanagement.

Mr Renouf declined to go into details about projects ear-marked for Hellaby, but said they would involve restructuring and streamlining the Renouf Corporation.

“We’ve known each other for 20 years and like to hit tennis balls together,” he said. “I am looking forward to working with Bruce (Judge).” Mr Cashin said talks began with Mr Judge just before Christmas, and were completed in a very short period. Mr Renouf said the idea of a merger occurred to him in October, 1982, but it had taken three years to organise. The idea had arisen because of his friendship with Mr Judge.

Mr Renouf does not envisage any problems gaining shareholder and statutory approval for the merger.

He described the move as “the most exciting development to hit Wellington financial circles for a decade.”

“It is proof that the old boy, the dark horse, is still active,” he said.

Mr Renouf said that on the retirement of Mr Jack Radford at the forthcoming annual general meeting, Mr Judge as executive chairman of the Ariadne group would become Renouf Corporation deputy chairman. Mr Judge will continue as chairman of Hellaby with the particular objective of accelerating the industrial expansion and profitability of Hellaby.