E’corp Tas. snaps up Monier holding

Press, 30 May 1987, Page 26

E’corp Tas. snaps up Monier holding

By

IAN VERRENDER

of AAP (through NZPA) Sydney Allan Hawkin’s Equiticorp Tasman, Ltd, has snapped up a 4.91 per cent holding in Monier, Ltd, which currently is the subject of a sAusts93 million take-over bid by CSR. Equiticorp Tasman managing director, Mr Murray Boyte, revealed the investment in a brief statement which said his company held 7.64 million Monier shares.

Mr Boyte said the shares had been bought on market “at below current market prices” and that Equiticorp would be a long-term investor in Monier.

But given Equiticorp’s reputation as an aggressive share trader and the fact that under Australian takeover law it does not have to disclose its holding until it exceeds 10 per cent, many analysts believe the company is gearing up for a classic arbitrage deal with CSR.

CSR sees its bid for the building products group as a major step in its restructuring and expansion programme following the sale of its Delhi Petroleum division in March

and its decision to concentrate on sugar and building products. Mr Boyte refused to comment on whether Equiticorp would continue buying Monier shares, on how much it had spent on the Monier investment or on whether it would be prepared to launch a take-over bid for the company.

Equiticorp has about sAust29o million in the kitty for investment purposes and warned last month that it was on the hunt for a “long-term, significant, industrial investment in Australia.” It also has substantial lines of credit available to support a sizeable acquisition and is unburdened by borrowings.

Monier shares rose 25c to Aust4lsc on Thursday, well above CSR’s 380 c a share bid. CSR appeared to have its take-over bid for Monier wrapped up when it won the approval of independent Monier directors after lifting its offer price to 380 c.

An option agreement between CSR and Redland pic, which holds just above 50 per cent of Monier, made the two companies associates and

gave CSR virtual control. The proposal provides the option for CSR and Redland to run the company as a joint venture and Redland has the option to accept CSR’s offer within six months of the bid closing.

At a presentation to institutional investors last month, CSR executives made it clear they expected Redland to stay in Monier.

Equiticorp’s move on Thursday follows a sharp lift in profit in the year ended March 31.