Cromwell in alliance

Press, 3 July 1986, Page 29

Cromwell in alliance

' The directors of Cromwell ‘ Corporation, Ltd, will recom- , mend to the shareholders at • the annual meeting on July 17 that the bonus issue be withdrawn. There was also a joint announcement yesterday that Cromwell and Terra Firma Properties, Ltd, has forged an , alliance in a series of share- . holding moves. ■ Mr Graeme Bringans, ■ Cromwell’s managing direcI tor who will be chairman of Terra Firma, said Cromwell ■ was to acquire a shareholding 1 in Terra Firma, beginning J with a placement of Terra i Firma shares as considera- ■ tion for the acquisition of two of Cromwell’s properties. Agreement had also been reached for Cromwell to acquire further shares in Terra Firma subject to certain con- ‘ ditions being fulfilled within four months. Terra Firma’s capital base will be expanded, starting with a placement of existing

shares at 220 c each, with the clients of the company’s brokers, Forsyth Barr and Company, of Dunedin, over the next two weeks. The companies said that Messrs Eion Edgar, a Dunedin stockbroker with the firm of Forsyth Barr, and David Stock, a corporate solicitor with the Christchurch firm of Weston Ward and Lascelles, have been appointed directors. Further details of Cromwell’s equity participation and of the two properties being acquired by Terra Firma would be made available as soon as the appropriate formalities had been completed. Terra Firma’s directors believed that yesterday’s announcement had fully informed the investment market as to board changes and the future direction of the company. Accordingly the “don’t sell” warning issued on June 27 had been withdrawn.