J. Smith goodbye

Press, 31 July 1986, Page 31

J. Smith goodbye

PA Wellington Shareholders of James Smith, Ltd, yesterday waved goodbye to the long established retail side of the business and welcomed the group’s new property base. The Wellington department store proprietor will sell its retail trading assets to L.D. Nathan, Ltd, for cash at their net book value at Friday's balance date, it was confirmed at an extraordinary general meeting. Executive chairman, Mr Douglas Smith, said that James Smith’s department stores would continue to trade under the same name, but as a division of Nathan. The sale comes after the Smith family sold their 60 per cent holding to Aucklandbased Mace Development Corporation, Ltd. Mace has since lifted its stake to almost 80 per cent, with the rest of the shares held independently. The deal will leave James Smith with a substantial cash reserve from the sale, along with ownership of its strategic and valuable site on the corner of Cuba and Mmmers Streets. Mace plans a

property in Porirua, the only other owned by the company. “The future earnings of the company should be higher than those previously achieved,” Mr Smith told about 20 shareholders at the meeting. More than 76 per cent of shareholders voted by proxy. Mr Smith said the future of James Smith lay in the hands of its new controller. Mace’s joint managing director, Mr Peter Cooper, explained at the meeting that James Smith company would have a change of name and obviously a new direction as a result of the sale. But details were unlikely to emerge for a few months. It was envisaged that Stock Exchange listing would continue under the name of James Smith until the new name was approved. To a question from a shareholder, Mr Cooper said it was too early to divulge business opportunities the company was considering. “We’ll be making a detailed announcement in the near future,” he said. Questioned after the meeting, Mr Cooper said the company would obviously have a property flavour, but he said

it was important that all the ground work was done before he said anything more publicly. Since negotiations with James Smith began, Mace and Nathans have agreed to merge, subject to approval from shareholders. The deal entails Nathan acquiring all the shares in Mace, and Mace taking a shareholding in Nathan. In effect, Mace will become a wholly-owned . Nathan subsidiary.