Winstone in for cement ‘action’

Press, 14 March 1987, Page 24

Winstone in for cement ‘action’

PA Wellington Winstone, Ltd, want a piece of the action should the domestic cement industry undergo a reorganisation similar to that which has happened across the Tasman, Winstone’s chief executive, Mr John Ede, said yesterday. Winstone (a subsidiary of Brierley Investments, Ltd), was yesterday given approval to take over Golden Bay Cement, Ltd, which is 70 per centowned by United King-dom-based Blue Circle Industries. Blue Circle recently sold its Australian cement interests to Boral, Ltd. Strategically, applying for takover permission was the right thing to do for anything that might

eventuate, Mr Ede said. Greyfriars Investments, Ltd, a Fletcher Challenge, Ltd, unit, also has approval to take 100 per cent of Golden Bay. Mr Ede said Winstone was a major consumer of cement. “We have an on-going interest in that sector. With the present developments in the cement industry going on, it is desirable for us to take the opportunity of being a part of that,” he said. While the sale of Blue Circle Australia was a separate issue “one could take the view that there may be some common rationalisation.” "We want to be able to make a move if necessary,” Mr Ede said. BlL’s chief executive,

Mr Paul Collins, said earlier the move by Winstone was “partly defensive, partly offensive”. Fletcher Challenge was not in a position to officially comment on the Wiristone move, a FCL spokesman said. On Thursday, BIL received acceptances of 64,320,594 ordinary shares and 3,248,583 preference shares of Winstone which represented about 96.5 per cent and 90 per cent respectively of the shares not previously owned. This increased BlL’s total holdings in each category to 98.5 per cent of the ordinary shares on issue and 97 per cent of the preference shares on issue. The offer closes on Monday.