ARABS plan cleared

Press, 15 July 1987, Page 40

ARABS plan cleared

PA Wellington Australasian Racing and Breeding Stables, Ltd, has received consent from the New Zealand Commerce Commission and Overseas Investment Commission for an increase in the company’s shareholding in Ra Ora Stud, Ltd, from 24.41 per cent to 58.95 per cent

This transaction involves the transfer from the estate of Sir Wolf Fisher of 5,382,300 ordinary shares of 50c each in the capital of Ra Ora Stud, Ltd, in exchange for the allotment to the estate of 3,075,600 ordinary shares of 100 c each in the capital of Australasian Racing and Breeding Stables, Ltd. ARABS shareholders

approved the transaction at an extraordinary general meeting on June 19. Mr Noel Robinson will join the company’s board of directors on completion of the deal. The company will also now seek Commerce Commission and Overseas Investment Commission consent for a take-over offer to all shareholders of Ra Ora Stud on the basis of four shares in ARABS for each seven shares in Ra Ora Stud, the company advised the Stock Exchange. The company has also formed two thoroughbred breeding ventures known as the Tasman No. 1 Breeding Venture and the Tasman No. 2 Breeding Venture. This involved 50 per

cent public investment in the mares and foals in the Tasman No. 1 venture and 75 per cent public investment in Tasman No. 2. The company has retained a 25 per cent interest in each of the breeding ventures and will continue to manage the bloodstock of the breeding ventures. The proceeds from these transactions together with the proceeds of the company’s recent rights issue of share options have been used to repay company debt This included payment in full of all remaining monies owed to Swettenham Stud in relation to the purchase in July, 1986, of bloodstock interests valued at about $17.5 million.