Details of formation

Press, 23 July 1986, Page 37

Details of formation

The formation of Rainbow Properties, Ltd, the 54 per cent-owned subsidiary of Rainbow Corp, Ltd, will be achieved through the purchase of the listed shell company A. M. Sisley, Ltd, which will change its name to Rainbow Properties, Ltd. The new company will have an issued capital of $32.5 million in 50c shares, of which Rainbow will initially hold about 54 per cent. A further 13 per cent will be issued to existing Rainbow Corporation shareholders by way of a one-for-eight rights issue at 100 c a share. There will also be private placements at 125 c a share.

The new company will hold Rainbow’s 35 per cent interest in Aucklandbased property developer Argus Corporation, which, expects Stock Exchange’ listing soon, and the 40 per cent interest in Hobson group, the revamped tourist and property development company formed through the association of Queenstown Resorts and Hobson Developments. The directors of Rainbow properties will be Messrs Craig Heatley (chairman), Ken Wikeley (managing), Trevor Nicolson (executive) and David

Jones, Gary Lane, Peter Coote, and Bruce Taylor. They say they are confident the new company will achieve tax-paid earnings of at least $6.5 million in its first year. Developments under construction for the 1987 year will be valued at more than $lOO million. An extraordinary meeting of shareholders of A. M. Bisley is to be called in mid-August to sanction the sale of assets enabling Rainbow to acquire the shell company. As a result of the latest moves, which include the listing of the Rainbow leisure subsidiary Questar, Rainbow will have gross assets of more than $2OO million and shareholders’ funds of more than $lOO million.