IEI-Link promotion

Press, 11 July 1986, Page 10

IEI-Link promotion

PA Wellington Less than three weeks after the successful listing of its BIL-Link units, the TAG Corporation, Ltd, subsidiary, Option Associates, Ltd, has announced that it will promote an offer of IEL-Llnk units. These will be linked to Brierley Investment, Ltd’s Australian subsidiary, Industrial Equity, Ltd. TAG’S chairman, Mr Peter Wise, said the offer of IEL-Link units would follow the form of the recent BIL-Link offer, but would be bigger, brighter and better.

“The underlying portfolio of shares has already been acquired,” he said. “In fact, we were under way with our second offer well before the first offer had closed.” Full details of the lELLink offer will be contained in a prospectus later this month. However, the IEL-Link units will be a new class of unit in the Link Trust) the existing listed vehicle. A total of 5 million units will be issued, of which a main portion will be made available to investors. Unit holders will receive with every two IEL-Link units, the right, to purchase one Industrial Equity share, including accumulated benefits at a predetermined and fixed exercise price on June 30,. 1989. The exercise price

will be fully underwritten by the AMP Financial Corporation and there will be no compulsion on unit holders to exercise their right of purchase in 1989. The investor, therefore, stands to benefit from the upward movement of the shares, with the downside risk limited to the amount of the initial outlay. Although Industrial Equity is an Australian domiciled company whose shares are in Australian currency, ,an additional feature of the offer will be that the IEL-Llnk subscription and exercise prices will be denominated in New Zealand currency. This means Investors will also stand to gain from any downward movement of the Kiwi against the Australian dollar, with upward movement protected by the underwritten exercise price.

Mr Wise said the Industrial Equity share price had shown similar growth to that of its parent company in recent years. “When you combine that factor with the currency equation and the fact that BIL-Link units are selling at five times their issue price, it makes the IEL-Link offer a most interesting proposition. This time we intend to give TAG shareholders a larger and more specific entitlement,” he said.