Sth. Pet. approves

Press, 17 December 1986, Page 42

Sth. Pet. approves

PA Wellington The move by Brierley Investments to take a controlling interest in Southern Petroleum ' met opposition from some shareholders at Southern Petroleum’s annual meeting in Wellington yesterday. One shareholder said Brierley’s would later make a full take-over of the company and give the small shareholders “nothing at all.”

The chairman, Mr Geoff Albers said: “If Brierley’s wanted to make a bid they could make it now.”

The shareholders suggested that, at 36c, on cur-

rent prices most shareholders would be better to sell their Southern Petroleum shares.

One suggested there should be a free options issue to minor shareholders on the same terms as that proposed to be made to Brierley’s. Mr Albers said he doubted if BIL would respond favour-, ably to such a move; it could put in jeopardy the proposal for BfL to take a controlling stake.

The meeting approved the issue to the BIL subsidiary Payzone Exploration 88M shares and 80M options exercisable by November 30 1991, plus 8M options ex-

ercisable by September 30, 1988.

Mr Albers said the merger with Payzone would give Southern a 22 per cent interest in the exploration licence area 38/034, compared with about 5 per cent at present. The licence area had been independently valued at about S2BOM. The net asset backing of Southern Petroleum would rise from its current 24c per share to about 42J>c through the merger.

Mr Albers said the valuation made Payzone’s share of the licence worth S49M, for which Southern was only paying $39.6M — and by the issue of shares.