BHP takes up Elders block
NZPA-AAP
Melbourne
BHP on Friday exercised its right to take up more than 79M Elders-IXL shares, and made a healthy book profit of about sAustl3sM on the deal, based on the market price for Elders shares of 495 c.
BHP’s executive general manger, finance, Mr Geoff Heeley, said BHP had converted its Elders-IXL convertible bonds and exercised 140 options to take up a total of 79,064,167 ordinary shares in Elders on top of the 5M shares it already had. Elders, in a seperate statement to the stock exchange, said it issued 46,880,267 ordinary shares for BHP’s convertible bonds at an effective price of about 462 c a share, giving BHP a 33 cent premium at Friday’s price, or about $15.5M.
Elders also issued 32,183,900 shares on 1991 options at 435 c a share, 60c less than Friday’s price, or a book profit for BHP of about J19.3M.
BHP and Elders revealed in April that they had invested heavily in each other. The National Companies and Securities Commission then launched an inquiry into the share-trading, but announced on July 8 that it would not make an unacceptthe options and convert the bonds.
able conduct declaration over the deals.
BHP told the inquiry that its intention was to take up
Mr Heeley said. Friday’s move gave BHP something less than 20 per cent of the Elders stock. He would not say if BHP planned to increase its holding or make a take-over bid. “We are quite comfortable with the interest we have," he said.
The face value of the Elders NV convertible bonds was JUS 105,200,000 and the Elders issue on these involved converting 7740 SUSSOOO and 1330 SUSSO,OOO Elders NV 11.125 per cent guaranteed convertible bonds due 1994 into ordinary shares. The 46.9 M shares involved will rank equally with existing ordinary shares but will not be entitled to any dividends or other distributions declared or paid or made for financial periods ended before Friday. The 1991 options also exercised by BHP entitled it to be allotted 229,885 ordinary shares at SIM for each option (JI4OM).
These 32.2 M shares will rank equally with existing ordinary shares and will participate in future dividends.
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Press, 21 July 1986, Page 28
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367BHP takes up Elders block Press, 21 July 1986, Page 28
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