Fortuna Aust, talks

Press, 30 August 1986, Page 23

Fortuna Aust, talks

PA Auckland Fortuna Corporation, Ltd, is negotiating to acquire a multi-million dollar Australian operation in a move which will add a new dimension to Fortuna’s development, the chairman, Mr O. R. Gunn, told the annual meeting yesterday. . If successful it is the company’s intention to finance the acquisition by a combination of cash and the issue of shares. c

Shareholders approved a resolution to give the director authority to issue up to 4.5 million ordinary Fortuna shares at not less than 90 per cent of market price.

Mr Gunn said Fortuna was also looking at several opportunities for expansion, mainly in Australia. Shareholders approved a resolution to increase the company’s authorised capital from $lO million to $lOO million. Meanwhile, in a statement released to AAP in Sydney, where Fortuna is also listed, Mr GUnn said it would seek new investment and expansion opportunities there. Fortuna, is supplying marine fittings to America’s Cup yachts. "Our investments will be in line with our stated philosophy of seeking to be a performance orientated com-

pany with the capacity to maintain rapid growth whilst also maintaining a prudent equity to debt ratio,” he said. Mr Gunn said Fortuna, which held about 80 per cent of the marine fittings market in Australia and New Zealand, had so far sold about $750,000 worth of fittings to yachts taking part in the America’s Cup. Fortuna’s wholly owned marine fittings subsidiaries, Ronstan Marine Pty, Ltd, in Melbourne and RC Marine Products, Company, Ltd, in Auckland, both had a small percentage of the North American market with huge potential for expansion.