Feltex sells Email stake for $90.8M

Press, 16 July 1987, Page 28

Feltex sells Email stake for $90.8M

PA Wellington Feltex International, Ltd, has sold its 16.3 per cent stake in the Australian whiteware manufacturer, Email, Ltd, to various institutions for a total of sAust77.2 million (SNZ9O.B2M). Feltex said yesterday the 28.2 million shares had been sold at 275 c each. Its chairman, Mr Peter Stanes, said that Feltex would much prefer to go ahead with a bid for Email instead of selling the 16.3 per cent already held. However, restrictions imposed by Australia’s Trade Practices Commission made sale of the

shares was the only practical solution, Mr Stanes said.

Feltex was actively seeking suitable manufacturing acquisitions in Australia and North America, he added.

In May, Feltex bought a major commercial and systems furniture manufacturer in the United States, Allsteel Inc, with sales of SNZ3SO million. Feltex is also involved in the bid for Monier in Australia through its 38 per cent shareholding in Equiticorp Tasman, Ltd.

The 28.2 Email shares were sold ex dividend. After the company’s one-for-eight cash issue and the one-for-four bonus

issue of the last year, the price achieved had enabled Feltex to comfortably exceed its costs to date, Mr Stanes said. And in another move, Feltex International, Ltd, and Equiticorp Holdings, Ltd, said Feltex has transferred 20.9 million shares, 35.4 per cent, in Aurora Group, Ltd, to Equiticorp Holdings. Equiticorp said in a statement it paid 400 c a share, for a total consideration of $83.6 million, which would be paid in cash. Aurora shares last traded yesterday at 345 c.

Feltex is a 46 per cent unit of Equiticorp Holdings.

The purchase of shares

in excess of 20 per cent was subject to Commerce Commission approval, Feltex and Equiticorp said. The companies said the sale of the Feltex investment in Aurora was a further step for Feltex in progressively moving out of property and using the proceeds to invest in manufacturing activities. They said Equiticorp was treating the purchase as an investment banking transaction. In conjunction with Chase Corp, Ltd, which has a 35.3 per cent stake in Aurora, Equiticorp would review the structure and forward planning of Aurora with Aurora management.