Rainbow plans new property float

Press, 23 July 1986, Page 37

Rainbow plans new property float

PA Auckland Rainbow Corp, Ltd, plans to float a new property company on the sharemarket which will incorporate all its current property interests. The managing director, Mr Craig Heatley, said the new company will include Rainbow’s 40 per cent interests in the property developer, Argus Corp, soon to be launched, and its recently-announced 40 per cent interest in Hobson Developments, which will also be listed on the sharemarket. That company incorporates Queenstown Resorts. Rainbow Properties will also include Rainbow’s property Interests in Auckland, Rotorua, and Wellington, including the Nelson Street carpark building, Rotorua’s retail and office developments, and the Majestic Theatre building in Wellington, which is to be redeveloped Into a multistorey office building. It will also be involved in property development offshore. Rainbow Corp will retain a 60 per cent interest in the property company. This move follows the recent Questar float which incorporates Rainbow’s leisure industry interests in Auckland, including Rainbow's End Leisure Park, the Lilliput

mini-golf and bumper cars on Tamaki Drive, Kelly Tarlton’s Underwater World, and the Wet ‘n’ Wild water slides at the Parnell Baths, to name a few. Mr Heatley, is to increase his assets by $34 million by acquiring 5.4 million Rainbow shares from Equitlcorp Holdings Ltd. The buy Increases Mr Heatley’s shareholding in Rainbow to 30 per cent, which on current market values is worth about $lOO million. The 5.4 million shares, representing about 10 per cent of Rainbow’s issued capital, are to be bought at 650 c a share, cum bonus. The Equitlcorp interest in Rainbow will be reduced to a little more than 15 per cent. . Equltlcorp’s chairman, Mr Allan Hawkins, who is also chairman of Rainbow, said he made the sale reluctantly. Equitlcorp would not have sold any part of its holding to anyone but Mr Heatley. "Craig has wanted to increase his own stake for some time and this was really the only practical solution.” Mr Hawkins said he believed in the principle of equity participation by company executives and the sale was in line with that principle. “The fact that he is prepared to outlay $35 million should be seen as a very positive Indication of Rainbow’s continued success by its shareholders.” Equitlcorp plans to retain its long term investment in Rainbow at or above 15 per cent in the future.