Aust. sale expected

Press, 12 August 1986, Page 13

Aust. sale expected

PA Wellington Rothmans Industries, Ltd, directors still believe the sale of the company’s tobacco business to Rothmans Australia will eventuate under earlier arrangements, the chairman, Mr T. N. Johnston, said yesterday.

In a letter to shareholders, he said the directors had decided to call a new meeting of shareholders in September to seek authority to sell the company’s tobacco interests.

Commenting on Rainbow Corporation’s sale of its 201 per cent interest in RIL to Ariadne Australia, Mr Johnston said RIL directors welcomed Ariadne’s statement that it sees Jts interests as compatible with those of RlL’s other main shareholders. The RIL board expected that this shareholder change removed previous difficulties in selling the tobacco interest?. The Government had also introduced “particu-

larly severe" additional taxation on tobacco products.

"The board believes that a sale of the group’s tobacco business to Rothmans Australia will still eventuate under the earlier arrangements.” A date for the meeting had not yet been fixed. The meeting would also be asked to approve a change of the company’s name to Magnum Corporation, Ltd, and an increase in the company’s authorised capital.