C-WS control retained

Press, 15 April 1987, Page 39

C-WS control retained

NZPA Sydney Kia Ora Stud, Ltd, once Australia’s foremost thoroughbred stud, has been transformed into a diversified industrial company with a controlling shareholding in New Zealand’s Cory-Wright and Salmon, Ltd. But despite changes involved in a sAust3o.3 million ($NZ37.4 million) deal approved at a meeting of Kia Ora shareholders in Sydney yesterday, ultimate control of CWS remains in the hands of its chief executive, Mr Robert Philpott. The restructuring gives C-WS a substantial base from which to expand in Australia and is expected to boost Kia Ora’s earnings after it recorded a sAust499,ooo ($NZ616,265)

loss for its first half year since listing.

The shareholders agreed to acquire the issued capital of Tatra Investments, Ltd, which owns 47.2 per cent of CWS, from Mr Philpott’s private companies in return ' for 21.6 million shares valued at Austl4oc each (NZl75c) and 2 million options.

Shareholders also agreed to increase Kia Ora’s authorised capital, change the company’s name to Dapoli Corp, Ltd, and place 12 million shares with institutions at Austl2sc a share (NZ156.25C). Mr Philpott’s companies emerge with a 62.5 per cent stake in Dapoli Corp. “To be really blunt about it the ultimate

shareholder is completely unchanged,” he said after yesterday’s meeting.

“So what do I get out of that? I get a positioning in Australia which is essential and I get a much greater financial base from which to work.”

But they said yesterday they had not set out to buy into the bloodstock industry — it was purely an avenue to enter the Australian market.

Mr Robert Philpott, who is expected to be executive chairman of Dapoli, said there were enormous engineering opportunities in Australia — and also Malaysia and Singapore

— the company was interested in. C-WS had sold four corporate jets worth SUSB million ($NZ13.72 million) each through its British Aerospace agency in New Zealand in less than six months.

C-WS currently has no British Aerospace distribution rights in Australia. Asked if he hoped to gain them, Mr Philpott said: “One hopes to do all sorts of things.”

But he added that Dapoli could be involved in financing packages for aircraft and other products, including monorail projects in Australia and ,New Zealand.