Euro-Nat acquires big Kupe holding

Press, 3 February 1987, Page 19

Euro-Nat acquires big Kupe holding

. PA Wellington Euro-National Corp, Ltd, the Auckland-based merchant bank, yesterday acquired 47.1 per cent of Kupe Group, Ltd, in a cash and scrip deal worth $209 million. The purchase is subject to Commerce Commission and shareholder approvals, Euro-National said in a statement. The company had acquired both the 27.1 per cent holding of McConnell Dowell Corporation, Ltd, and Mr G. S. Hamilton’s 20 per cent holding, giving it 42.3 million fully paid shares and 21.7 M partly ■ paid Kupe Group shares. Euro-National’s chairman, Mr Rod Petricevic, said that Kupe Group, which last year took over Apex Group Ltd, was soundly-based with strong

growth prospects and a major investment and property development portfolio. It was highly liquid, with shareholders’ funds totalling 65 per cent of total tangible assets, 57 per cent of which are either in a liquid or near liquid form. Kupe had a $l7l million portfolio of properties (valued at cost) mostly in downtown Auckland and Wellington. Kupe’s investment portfolio included a 24 per cent interest in Ceramco. The company also owns Duncan and Davies, Ltd, Samuel Parker, Ltd, Rhino Securities, Ltd, Metropolitan Securities, Ltd, and 50 per cent of Datacorp, as well as being involved in a big joint venture, Arcadia Corpora-

tion, Ltd, with Brierley Investments, Ltd, and Dominion Breweries, Ltd. The deal involved $180.4M in cash; the issue of 8.6 M fully paid ordinary 25c Euro-National shares at 598 c each to Mr Hamilton and his family interests; and the issue of 1.4 M partly paid ordinary 25c Euro-National shares at 598 c, credited as paid to 161 c each to Mr Hamilton and his family interests. The net result is that Euro-National has acquired the 47.1 per cent shareholding at a price equivalent to 342 c a fully paid Kupe ordinary share and 295 c for the partlypaid share, after taking into account the funding package offered by the sellers. Kupe Group’s ordinary shares closed at 255 c and ■ Euro-National at 425 c yesterday. Before Christmas, Kupe Group sold a large part of its share portfolio. Because of this, and the completion of a number of property sales, Kupe Group was “well on target” to achieving its SSOM profit forecast for the year, Mr Petricevic said. After the change of ownership, Mr Hamilton, the managing director,

would become chairman and chief executive of Kupe Group. He would also join the board of Euro-National. Kupe Group would be strengthening its management by appointing a general manager in New Zealand and altering the board of directors because of the changes in shareholding. “The new board will then be reviewing its strategy for overseas growth, particularly as it affects the United Kingdom.” All of Euro-National’s and Kupe’s property activities were planned to be done within the Kupe Group, allowing EuroNational to concentrate on banking. To do this Euro-National would sell its property activities to Kupe. Euro-National will call an extraordinary meeting for February 27, to approve the issue of shares to Mr Hamilton as part of this transaction. The company will also be seeking shareholder approval at this meeting to issue 7.5 M fully paid shares to Euro-National Equities, a joint venture company between EuroNational and the Caxton group of companies.