Bexley takes 20 per cent Comm. Securities

Press, 5 September 1987, Page 26

Bexley takes 20 per cent Comm. Securities

The Auckland-based investment company, Bexley Corporation, has bought a 20 per cent shareholding in Commercial Securities from Unigroup Pacific (formerly Unity Group) in a deal worth $17.6 million. The purchase price was $2.35 for the 7.5 million 50c ordinary shares. Bexley already owns 2.1 per cent of Commercial Securities and the deal will increase its shareholding to 22.1 per cent. In addition, Bexley has an option on the remaining 8.6 per cent of Commercial Securities which is still held by Unigroup Pacific.

Bexley’s director of corporate investment, Mr Terry Arnold, said that as Commercial Securities owns 23 per cent of Bex-

ley Corporation, this cross shareholding will strengthen the existing ties between the two companies.

“We see this cross shareholding as a very natural development of the existing relationships between our two companies. The companies are complementary in that Bexley is primarily an investment company with interests in property development and foods, while Commercial Securities acquires and holds property on a long term basis.

“We both have international interests and we are both looking at further expansion offshore. This transaction has provided Bexley with an excellent opportunity to cement a cross shareholding relationship and de-

velop a well balanced property development/investment group.” Commercial Securities managing director, Mr David Davies, said the working relationship his company has enjoyed with both Unigroup Pacific and Bexley will continue. “In spite of the change in the shareholding I don’t anticipate any change in the relationship we have with both companies. We think Bexley’s involvement is a very positive and welcome move. Our excellent relationship with Unigroup Pacific, Ltd, will continue through our joint venture development in Queen Street.” Commercial Securities has as its main objectives the long term ownership of prime real estate in the main streets of selected

cities in New Zealand and overseas. Commercial Securities’ Queen Street sites in Auckland include The Plaza Shopping Centre and the ASB Chambers. Bexley and Commercial Securities also have a common interest in the Auckland investment holding company, Technlcorp Investments which has brought together a number of profitable, privately-owned companies. Bexley has a 20 per cent holding and Commercial Securities has a 46 per cent holding in Technicorp. Bexley’s acquisition of 20 per cent of Commercial Securities is conditional on Commerce Commission approval and the deal is expected to be settled at the end of this month.