Float for Prorada

Press, 30 September 1986, Page 19

Float for Prorada

PA Wellington Prorada Properties, Ltd, Rada Corporation’s property investment subsidiary, will be floated in October, Rada’s managing director, Mr George Wheeler, said yesterday. The new company would be placing a large portion of its investments offshore, said Mr Wheeler. “We intend to invest 60 per cent of our capital in New Zealand and Australia, with the remaining 40 per cent being invested in the United States,” he said.

Preliminary details of the float of Prorada were made public yesterday when it was announced by the company that only Rada shareholders would be offered shares by way of a one-for-two rights issue.

"Rada itself will contribute 50 per cent of share capital and NZ Forest Products will take up its 25 per cent entitlement. The final 25 per cent ownership will be offered to Crown Corporation (10 per cent) and the remaining 30,000 Rada shareholders,” said Mr Wheeler.

He said the rights issue was renounceable. Fractions would be rounded to the nearest 100 shares, subject to confirmation by the Stock Exchange. The Prorada float is similar to the Rada float of late last year, when Rada’s parent, NZFP, provided founding capital, with the remaining capital being raised by a one-for-four rights issue to NZFP shareholders.

Prorada would have shareholder funds of $lOO million, and each share would have a nominal value of 50c.