ASI $2.5M profit, issue

Press, 21 May 1987, Page 23

ASI $2.5M profit, issue

PA Wellington American Strategic Investments, Ltd, has announced a maiden net profit for the eight months ended March 31 of $NZ2.55 million and a one for three cash issue. No dividend will be paid confirming the directors warning in the prospectus that dividend payouts would be minimal in the early years of the company’s development.

Investment income was $3.41 million, profit before tax $2.53 million, and tax took $BOOO. Total shareholders’ funds stood at $71.58

million at year’s end. Net tangible assets per share were $2.21, but the directors noted that net asset backing had been reduced by the New Zealand dollar rising against the U.S. dollar. The one for three rights issue will be made at SAUSTI.2O (SNZI.4B), a premium of SAUSTI.OO per ordinary share on the AUST2Oc par value. Holders of the 1991 options will be able to participate in the cash issue on a one for 12 basis. A private placement of 10 million new ordinary shares at SAUSTI.62 (SNZ2.OO) has been made

to Capitalcorp International, Ltd, of Hong Kong, and these shares will participate in the cash issue. The placement was made at a premium of 17.5 per cent over current market prices, the chairman, Mr Dugald Fletcher, said. Mr Peter Hunt, managing director of Capitalcorp International has been appointed to the board, replacing Mr Andrew Peck, also of Capitalcorp. The company was formed in August 1986 to invest in strategic holdings in smaller American public companies with a

market capitalisation between SUSIO-150 million which may have been overlooked by Wall Street brokerage houses. Total funds committed to the U.S. equity market at year’s end stood at SUSS million, but since then another SUS2 million has been invested. Positions held in these companies are below the mandatory U.S. 5 per cent disclosure limit.

The directors said they are now restructuring their U.S. operations to “broaden the company’s deal flow in the U.S. market”.