RJI issue, Wall St buy

Press, 18 December 1986, Page 36

RJI issue, Wall St buy

PA Wellington Robt Jones Investments, Ltd, has announced its crowning acquisition for 1986 — the purchase of a 24-storey office tower at 44 Wall St, in the hear of New York’s financial district, for SNZI2O million. At the same time, the chairman, Mr Bob Jones, announced a l-for-10 share issue at 200 c a share, and a scheme for shareholders to lock up their holdings for chosen terms to earn bonus issues.

The Wall Street building has 28,000 square metres of office space and occupies one

end of an entire city block. It was funded overseas. Robt Jones had also completed negotiations on 12 deals which would be announced in the New Year, including one twice as big as 44 Wall Street. The bonus issue scheme was one of the most innovative ever devised to ensure the success of an expansionminded company, Mr Jones said. The principles of the scheme were devised by the British Government with its recent Post Office privatisation float.

The scheme will operate from January 27, 1987, subject to approval from a special meeting on that day. Mr Jones said the scheme worked on a voluntary lockup share basis, where shareholders could submit their shares for varying no-sale period of their choice, to be held by the trustee, Trustees Executors and Agency Co., Ltd. ' The shortest period was for two years, earning a one for 10 bonus, with a scale at twoyear intervals and increasing bonus incentives up to 10 years, which earns a one for

one bonus. The cash issue also announced yesterday would raise $BO million to ensure a capital base for a $350 million long-term debt facility planned for May, 1387, Mr Jones said.

Rights trading would begin on January 19. This year had been a phenomenal one for Robt Jones Investments, Mr Jones said, and the company was aiming at an even better one in 1987.

The target was $2 billion of new assets, primarily in Australia and the United States, he said.