Renouf, Judge announce big changes in N.Z.

Press, 26 February 1987, Page 25

Renouf, Judge announce big changes in N.Z.

PA Wellington Tennis playing partners, Sir Francis Renouf and Mr Bruce Judge, yesterday announced big changes in their two New Zealand companies. Mr Judge’s Ariadne Australia, Ltd, will sell its 47 per cent stake in Renouf Corporation, Ltd, mainly to Mr Judge’s Christchurch-based Judge Corporation, Ltd, which will hold 36 per cent of Renouf Corporation. Sir Francis will stand down as the chairman of Renouf Corporation, the Wellington merchant bank which he founded, in favour of Mr Judge. In associated moves Renouf will acquire 25 per cent of investment company Euro-National Corporation, Ltd (ENC), the investment group, while Judge Corporation will buy ENC’s 47 per cent in another large investment business, Kupe Group, Ltd. As a result of arrangements now complete, 36 per cent of Renouf Corporation shares owned by Ariadne have been placed in an associated company of Judge Corporation. A further 18 per cent, including the balance of Ariadne’s holding, has been placed overseas with a party not at present associated with the Renouf or Judge groups. The

Renouf family interests will continue to hold 16.4 per cent The remaining 29.6% of shares are held by investment institutions and public shareholders.

Mr Judge said that Ariadne Australia had announced its intention to sell 90M shares in Renouf Corporation to encourage Renoufs overseas expansion.

It is understood the shares are being placed privately at SNZB a share.

Judge Corporation will proceed to seek shareholder approval for directors to issue at their discretion up to 30M shares to assist in financing the purchase of further assets. It proposes to immediately place 15M Judge shares at SNZIO overseas with undertakings that they would not be sold for two years and at the time of any sale offered back to Mr Judge who has said he would buy the stock. (The price of Judge Corporation shares on the New Zealand sharemarket yesterday was $7.50 each.) The SISOM raised in this initial placement will provide sufficient funds to enable Judge Corporation to buy 47.1 per cent of Kupe Group from EuroNational.

The balance of the acquisition cost will be paid

at the end of the current year. Sir Francis issued a statement in Sydney saying he would take up the title of Founder President in Renouf Corporation.

Sir Francis said that he had indicated at the corporation’s last annual meeting that he intended to retire before the 1987 meeting in favour of the deputy chairman, Mr Bruce Judge. “However, . I became concerned that there may be some conflict between the interests of Judge Corporation and Renouf Corporation. “I have now been satisfied that Judge Corporation will remain a holding company for the major interests in Renouf Corporation and Ariadne Australia and that Bruce’s efforts will be concentrated on further developing Renouf Corporation’s interests,” Sir Francis said.

"Having been satisfied on that point I want to concentrate on the provision of international contacts and opportunities and can do this more easily without the duties of direct executive involvement.”

Mr Judge said he and managing director, Mr Michael Cashin, were now concentrating on the further development of Renouf Corporation’s activities.

Renoufs managing director, Mr Mike Cashin, said the various transactions placed Renouf in an extremely strong position to make further strategic developments. Although a number of the transactions were sub-

ject to Commerce Commission approval, Renouf Corporation was pleased with the manner in which the sale of the Renouf shares held by Ariadne had been done.

“It was important to us that the divestment be carried out as smoothly and quickly as possible because we have significant developments at the planning stage,” he said. Renouf Corporation’s shares were actively traded on Tuesday, ahead of the announcement, the price climbing 34c to close at 652 c, its high for the day. More than 500,000 shares sold 2c below the closing price. The issue rose 8c to 660 c yesterday. The Renouf Corporation’s agreement to buy 25% of Euro-National is subject to Commerce Commission approval. Renouf will acquire 10.8 M fully paid shares in ENC at a price of 598 c a share and will subscribe for 19.3 M fully , paid new shares of 25c each at a premium of 573 c a share, this allotment being subject to approval of ENC shareholders.

Euro-National Corporation, Ltd, paid S2O9M for its stake in Kupe in a deal announced on February 2. It will receive S23OM in cash from Judge Corporation for the stake.

In separate transactions, Euro-National has also agreed to; • Buy from the Caxton Printing Works, Ltd, its shareholding in EuroNational Equities, Ltd. The purchase price of S63M will be paid by the issue of 10,535,117 fully paid shares in Euro-

National Corporation, Ltd, at a premium of $5.73 each. This subsidiary will be wholly owned by EuroNational.

• Issue to Renouf Corporation 19.3 M shares at a premium of $5.73, for cash Renouf Corporation will acquire a further 10.8 M shares at $5.98 bringing its total shareholding to 30.1 M EuroNational shares.

The transactions, which are subject to Commerce Commission and shareholder approval, will mean the issued capital of Euro-National will be 115 M shares. The majority shareholding will be: Caxton Printing Works 25%, Renouf Corporation 25%, executive directors 25%.

Mr R. M. Petrevic, chairman of EuroNational, said: Our strengthened capital base, comprising respected entrepreneurial shareholders, together with our strong corporate and banking team, greatly extends our clout in Australasia and it is no secret that we have been looking at opportunities on both sides of the Tasman with a view to acquisition.

“With shareholders’ funds of nearly $4OO million, total assets well in excess of SSOOM, S22OM of which is in cash, we are superbly placed to play an active role in Australasian financial markets and, as I have indicated in the past, we will not be letting the grass grow under our feet,” he said.

Euro-National’s shareholders’ funds will increase to SSI7M, S22OM will be in cash.