Management to buy 60% R’bow Prop.

Press, 24 July 1987, Page 18

Management to buy 60% R’bow Prop.

The Investment company, Rainbow Corp, Ltd, is to sell its 60 per cent stake in Rainbow Properties, Ltd, on July 31 to Rainbow Properties’ managing director, Mr Ken Wikeley, and other executives. Rainbow Properties will be renamed Primacq Holdings, Ltd, Rainbow Corp said yesterday. Rainbow Properties would sell its 20 per cent stake in Australian property development and investment company Kern Corp to Rainbow Corp, and its 40 per cent stake in Argus Corp, Ltd, to Rainbow Corp’s leisure unit Questar Corp, Ltd, the company said. The sale of the Argus holding would be subject to Commerce Commission approval. Primacq would purchase Rainbow Corp’s 23

per cent holding in re-cently-listed Australian financial services company, Finadco, Ltd, subject to approval by Australian authorities. Mr Wikeley is a director of Finadco. Rainbow Corp said Primacq Holdings would retain Rainbow Properties’ 25 per cent stake in Securities Corp, Ltd, and 25 per cent holding in Prime West Corp, Ltd. Primacq would have shareholders’ funds of about $52 million and gross assets worth more than $72 million, it said. Rainbow Corp said it would sell its 60 per cent stake in Rainbow Properties at 102 c each. Rainbow Properties last traded at 105 c. Rainbow would purchase the 20 per cent

stake in Kern Corp for about $81.6 million. Questar would purchase the 40 per cent, holding in Argus Corp at 290 c a share from Primacq and private vendors. Argus last traded at 285 c. Primacq would purchase the 23 per cent holding in Finadco at AustlOOc a share. Primacq’s major projects would include the redevelopment of the Majestic site in Wellington, Aotea towers in Auckland, Arawa House in Rotorua, a proposed redevelopment of Princes Wharf and of Britomart Quay in Auckland, the company said. Auckland solicitor, Mr Tony Agar, would be appointed Primacq chairman following the resignation of Rainbow Corp nominees. Mr Wikeley said the reconstruction had been

under consideration for some time. “The company will be based on, but not restricted to property-re-lated activities. It will look to other investment activities in other fields,” he said. Rainbow Corp managing director and Questar chairman, Mr Gary Lane said he expected benefits to both Questar and Argus from their closer association, particularly in the marine area. In April, Brierley Investments, Ltd, acquired a 30 per cent holding in Rainbow Corp. Brierley Investments last month said it would channel its own property development activities into a 50-50 joint venture company to be called Brierley Cromwell Property, Ltd, involving listed property developer Wellesley Resources, Ltd.