Povey suspended

Press, 23 September 1987, Page 42

Povey suspended

NZPA-AAP Perth The Perth Stock Exchange yesterday suspended trading in petrol retailer Povey Corporation after the collapse of its sAustls.s million takeover of Gull Petroleum (WA), Ltd. A spokesman for the exchange said the stock was suspended while more information was sought from Povey. Late on Friday Gull said Povey Corp had failed to complete its contracts for the deal and the vendors had forfeited Povey’s sAust2M deposit. Povey chairman, Mr Mark Povey, was not available. His office said

he had legal advice to not make any public comment.

On June 19 Povey announced the purchase of Gull’s 17 freehold and 16 leasehold retail petrol stations for sAustls.sM in cash and shares. The Gull deal, originally scheduled for completion on August 31, was to have been funded by a sAustlOM capital injection from Mr Povey and the sale of- non-petroleum assets. In early August Mr Povey announced the injection had been completed and revealed he had been buying Povey on-market to regain control of the

group. The Gull deal followed a series of purchases which had rapidly made Povey Corp Australia’s largest independent petrol station operator with outlets in four states. On April 30 Povey announced a major restructuring- to streamline the company with the sale of all non-petroleum assets to raise about sAustlsM over the next six months. These included shopping centres in Perth and Sydney, a stake in venture capital company Penn Securities, Ltd, and Adelaide retailer Prests, Ltd, which was to become a merchant bank.