lEL spends $20M on Bundaberg stake

Press, 9 April 1987, Page 24

lEL spends $20M on Bundaberg stake

NZPA-AAP Brisbane Ron Brierley’s voracious Industrial Equity, Ltd, has spent almost $2O million in less than a week to buy an 11.86 per cent interest in diversified Queensland group, Bundaberg Sugar Co., Ltd. Analysts said the move — revealed this week in a substantial shareholder notice — could mean Brierley has a second sugar company in its sights. lEL has recently been an active buyer of CSR, Ltd, sdrip. One analyst pointed out Bundaberg Sugar and CSR had mineral interests as well as sugar, and lEI had “a history of fascination

with such things as oil and gas and coal.” lEL said it acquired 7.61 million shares last Friday at an average price of Aust2soc. Brisbane broker Paul Morgan and Co. crossed that number of shares on Friday. The client is understood to have been Morgan associate, Ariadne Australia, Ltd. lEI acquired the rest of the shares, at an average price of about 250 c, in other sales in the past few days. No official comment was available from lEL, but Bundaberg Sugar group general manager,

Mr John Meikle, said he was not unduly concerned Bundaberg’s non-sugar interests include a 10 per cent holding in the Blair Athol steaming coal mine, regarded as one of the best open cut operations in the state. It also has control of two West. Moreton coal mines — Box Flat and Westfalen. .

One analyst said these could be the reason for lEL’s interest, but another suggested Mr Brierley may only be interested to gaining a quick profit once the predicted world sugar price recovery emerges. .