Wattie agrees to purchase NZFP rights an Rada

Press, 20 December 1986, Page 30

Wattie agrees to purchase NZFP rights an Rada

PA Wellington Wattie Industries, Ltd, has agreed, subject to Commerce Commission consent, to purchase from NZ Forest Products, Ltd the rights to that company’s entitlement to 50 per cent (less one share) of the current cash issue by Rada Corp, Ltd. The holding will equal 25 per cent of the total Rada share capital following the cash issue. NZ Forest Products said the sale of its rights would be at a price which reflected the current market value plus the strategic value of the parcel.

Wattie Industries said it would regard the holding as an important stake in a major investment company and one which could complement Watties skills in its drive for offshore expansion and development.

It is anticipated that Mr Pat Goodman and Mr Cliff Lyon will be invited to join the Rada board. The managing director of Rada, Mr George Wheeler, later said his company’s new shareholding would be NZFP 25 per cent, Wattie Group 25 per cent, Crown Corp 20 per cent, and the public and institutions 30 per

cent. In November, Rada agreed to buy Wattle’s holding of about 24 per cent of the issued capital of NZFP — about 4 per cent of which is subject to Commerce Commission approval. To help pay for that purchase, Rada was making a one for one cash issue at 100 c. It was through that' issue that Wattie was taking up the NZFP rights. As a result, NZFP’s shareholding in RADA fell ‘ from about 50 per cent to 25 per cent. “Not only have we been able to acquire a strategic position in one of New Zealand’s major resource companies — NZ Forest Products — but we have also gained strength from the involvement of Wattie Industries as a major shareholder,” he said. “Rada will also gain through the appointment to the board of two of New Zealand’s most successful business figures,” Mr Wheeler said.