Giltrap confident on Lane’s move
NZPA-AAP Sydney Directors of the New Zealand motor vehicle distributor, Giltrap Investments Pty, Ltd, were confident the company’s takeover bid for Lane’s Motors (Holdings), Ltd, which valued the target at sAust2B.l million (SNZ36.B2M), would ultimately result in 100 per cent control. Giltrap dispatched its formal take-over documents to Lane’s shareholders yesterday, offering Aust32oc (NZ4I9C) a share for the 94 per cent of Lane’s shares it did not hold. The offer, which closes
on July 15, is conditional upon a minimal acceptance of 50.1 per cent — including Giltrap’s current holding — and Foreign Investment Review Board approval. Lane’s directors have described the bid as inadequate and advised shareholders to take no action pending further advice.
A spokesman, for Giltrap’s financial advisors, Dominguez Barry Samuel Montagu, Ltd, said Giltrap ultimately hoped to gain 100 per cent control of Lane’s, after initial resistance from family interests.
He said the offer represented a high multiple of 20.8 times earnings per share for the 12 months ended December 31 last year, which was more than 1.5 times the average for the automotive segment of listed companies of 13.2, as at April 30 this year.
Giltrap directors have said the company planned to maintain Lane’s operations as a springboard for its expansion into Australia.
The Giltrap offer comes 21 months after Samaga Pty, Ltd’s, unsuccessful Aust3so (NZ45Bc) a share take-over bid for Lane’s.
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Press, 18 June 1986, Page 36
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231Giltrap confident on Lane’s move Press, 18 June 1986, Page 36
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