CCL sells stake in Fourth Estate

Press, 20 December 1986, Page 35

CCL sells stake in Fourth Estate

CCL Group, Ltd, lifted its “don’t sell” notice yesterday after announcing some restructuring moves, including the sale of its holding in Fourth Estate Holdings, Ltd, to an Australian publisher. The company announced that it had formed a holding company with Brierley Investments, Ltd, to acquire the shareholdings in CCL Business Systems, Ltd, which sells computer hardware and engineering services, and Andas Group, Ltd, which is involved in similar business.

John Fairfax (NZ), Ltd, a subsidiary of John Fairfax, Ltd, the Australian media group, has bought the 50 per cent of Fourth Estate it does not own.

Fourth Estate has the "National Business Review” among its titles, and John Fairfax has the “Australian Financial Review” and “Business Review Weekly” across the

Tasman among its media interests.

The formation of the new holding company came after Brierley compulsorily acquired the remaining shares in Andas. The new company would be 37.5 per cent owned by Brierley, 37.5 per cent by Mr Errol Williams, a CCL director and managing director of Andas; and CCL with 25 per cent, CCL said in a statement.

Mr Williams had sold his 25 per cent interest in CCL to Southern Cross Finance, Ltd, (SCF), which was co-owned by the chairman of CCL, Mr John Holdsworth. Mr Holdsworth had advised that SCF would hold some of the shares and place the remainder with the directors and major CCL shareholders. The placements would give SCF, 30 per cent; Independent Newspapers, Ltd, (INL) 29 per cent, and Brierley 10 per cent. The INL increase was

subject to Commerce Commission approval. CCL would keep CCL Computing, Ltd, its computer services group, and would also provide computer services for the Fourth Estate group.

The sale of the Fourth Estate holding and CCL Business Systems had given the group a capital profit of $9 million, the company said.

Mr Holdsworth said that CCL would benefit from increased investment income.

The Fairfax acquisition had been approved by the Overseas Investment Commission and the New Zealand Commerce Commission, CCL said.

Mr Fred Brenchley, the general manager, Broadway, of John Fairfax, said that Mr Hugh Rennie would continue as chairman of Fourth Estate. Mr Rennie is the chairman of the Broadcasting Corporation of New Zealand.