Batley restructure, expansion

Press, 5 December 1986, Page 24

Batley restructure, expansion

PA Auckland Batley Printing Group, Ltd, is to be restructured and expanded to become the parent to a diversified group. The company is to make a one-for-one renounceable cash issue to shareholders at 50c to expand its capital base and to take advantage of future investment opportunities.

The issue, to raise $4.5 million, is being underwitten by O'Connor Grieve and Co.

Consent will be sought from shareholders at the annual meeting to change the company’s name to PANZ Corporation, Ltd. The chairman, Mr James Richards, said the restructuring would change the company’s direction from that of

a manufacturer of packaging and plastic products to a diversified group retaining a strong base in New Zealand, but focusing on development of offshore opportunities, particularly in the United States.

Directors forecast a major turn-around with net earnings of $2 million for the year ending September 30, 1987. The company will continue

the operations of its subsidiary, Batley Packaging, Ltd. As part of its expansion moves, Batley is to acquire all the capital of Image Inter-' national, Ltd, described as one of New Zealand’s leading producers of colour printing and photo-litho material.

Consideration for the acquisition will be seven million shares ex-issue, subject to shareholder approval. In another move, the company has established a subsidiary, PANZ USA Investments, Ltd, to take advantage of investment and export opportunities in the United States.

It is expected PANZ USA Investments will be the major source of growth for the company. PANZ USA will also take a one-third equity interest in the Los Angeles-based company, Looking Good Incorporated, which designs and publishes calendars.

The various capital moves will lift the group’s ordinary issued capital from 6.5 million 50c shares to 22.5 million, of which Mr Richards will hold more than 45 per cent.