Con. Res. seeks stake

Press, 27 November 1986, Page 25

Con. Res. seeks stake

PA Wellington Consolidated Resources, Ltd, plans, subject to statutory and shareholder approvals, to take an unspecified stake in Byvest, an Australian management buy-out group. The Byvest group was formed to facilitate investments in substantial unquoted companies mainly by making large management buy outs, Consolidated Resources said in a statement to the Stock Exchange. The company believed the

investment would produce strong returns, counter cyclical to its current investment activities, and give shareholders the opportunity to participate in Byvest, while maintaining the liquidity of public company. To fund the purchase, Consolidated Resources would, on completion of its reconstruction and, subject to shareholder and statutory approval, issue 2.1 million shares at 50c to Dermide Holdings, Ltd, a publicly listed company in Australia

and New Zealand; and have a renounceable cash issue to shareholders on a one for two basis of 50c payable in two instalments, 25c on March 31 and 25c on September 30. Shareholders subscribing to the cash issue would also receive, with each right, one free option to buy an ordinary share at 80c in March 1, 1989, the statement said.

Those options would detach from the partly paid share upon payment of the final 25c instalment.