Prop Link cash issue

Press, 30 August 1986, Page 23

Prop Link cash issue

PA Wellington TAG Corporation subsidiary, Property Link, will make a 1-for-l cash issue at 60c a share, TAG’S chairman, Mr Peter Wise, said at the annual meeting. The cash injection would be used to develop Property Link and was part of an over all plan to gradually increase the property base of the company. "I might add the issue price of 60c in itself carries a significant bonus element,” Mr Wise said.

Progress by the property

side of the business had been encouraging. TAG itself expected realised and unrealised gains for the first six months of the current trading year to approach $5 million. By comparison, shareholders’ funds stood at only $5.5 million in the March 31 balance sheet. The company had not decided on its accounting treatment of the gains, but it was likely a conservative approach would be adopted. TAG’S activities had grown outside its link schemes, and Mr Wise could see no reason

why that growth shouldn’t continue. There were new projects being considered, but plans were not disclosed at the meeting.

Since the balance date, TAG had helped set up Electrocorp Holdings, which emerged from the TAG holding in Arnold and Wright. When Electrocorp lists on the Stock Exchange in a few days, TAG and the Arnold family will together hold a little more than 50 per cent of the shares, with the balance spread over about 600 independent shareholders.