Tasman link between two top studs

Press, 13 August 1986, Page 41

Tasman link between two top studs

PA Wellington A financial link between two of the major racehorse studs in Australasia — Ra Ora Stud, Ltd, of Auckland, and the Australian Racing and Breeding Stables, Ltd — was announced yesterday. Ra Ora will allot 3.8 million shares to ARABS and in return will receive 2.2 million fully paid shares in ARABS. This will result in Ra Ora holding 13.6 per cent of the expanded capital of ARABS, and in ARABS owning some 24.8 per cent of Ra Ora’s capital. The notional issue price of Ra Ora shares to ARABS was 240 c each, Ra Ora shares traded between 260 c and 280 c on the Stock Exchange yesterday. Approval from the shareholders of both companies will be sought for the proposed issues and ARABS will shortly make application for listing of its shares on the New Zealand Stock Exchange.

Ra Ora directors said that they expected the link with ARABS would not only assist them in securing an additional high quality stallion for the 1987 season but would also provide the platform for other thoroughbred ventures between the two groups.

Ra Ora said the estate of the late Sir Woolf Fisher, which holds a little under 45 per cent of the present capital of Ra Ora, fully supported the

proposal and welcomed the association with ARABS which it saw as maintaining Ra Ora at the forefront of the breeding industry. In addition, the estate had given ARABS a first right of refusal on its holding in Ra Ora should it wish to dispose of it at some stage in the future. Similarly ARABS had given the estate a first right of refusal over its shareholding in Ra Ora. ARABS chairman, Mr John Massara, has been Invited to join the Ra Ora board. Ra Ora said it was intended that each company would be the base for the other in the Tasman thoroughbred link and Ra Ora would prepare ARABS’ New Zealand yearling drafts for future national sales. The bloodlines controlled by the two studs gave the association ,a unique position in the southern hemisphere. Ra Ora, which was the first stud to list on the New Zealand Stock Exchange, had been a leading vendor at the New Zealand National Sales for over 30 years. The stud is based on 350 acres of prime property in South Auckland and it’s the home of the high class young stallions Sackford and Famous Star. The stud also owns a half interest in the proven Australian-bred stallion Imposing and has been actively upgrading its

broodmare band over the last few years. ARABS recently completed the acquisition of a 70 per cent interest in Mr Robert Sangster’s Swettenham Stud southern hemisphere breeding assets which included 15 lifetime breeding rights to Sir Tristram. ARABS has secured access for the southern hemisphere to Mr Sangster’s vast thoroughbred interests. Of ARABs’ 160 strong broodmare band some 29 are group one winners or group one producers. In addition, over 50 of ARABS’ other mares are either stakes performers or stakes producers. ARABS, which also has extensive stallion holdings in Australia, last month announced the acquisition of the Hunter Valley based Arrowfield property. The property, some of which has been used as a vineyard, will be converted into a world-class stud facility and replace ARABS’ existing stud, Middlebrook Park, as the headquarters of its Australian operations. The 2800-acre Arrowfield property was the leading thoroughbred stud in Australia in the 1920 s and is bounded by the Hunter River on two sides. Since its reorganisation in December 1985, ARABS gross assets have expanded from sAust6.4 million to about sAust4o million.