Carborundum seeks Cross Properties

Press, 23 September 1987, Page 41

Carborundum seeks Cross Properties

PA Wellington / Carborundum Abra-/ sives, Ltd, announced yes/ terday the proposed acquisition of the property development group, Cross Properties, Ltd. / Managing director, Mr Gary Guernier, sdid Carboundum would issue 4,718,080 50c /hares and 2,110,000 share options to the vendors/of Cross Properties. / • The options are exercisable at/$2 a share between/August 21, 1989, and August 21, 1994. This directors of Carborundum were forecasting after-tax profits for the year ended March 31 /to more than double, re-

/flecting 6 months profits from Cross Properties and an improved level of performance from Carborundum’s mainstream business. Carborundum shareholders will be asked to approve the transaction and the appointment of Cross Properties’ head, Mr Peter Cross, as a director, at an extraordinary meeting to be held in Auckland on October 21. Mr Cross was formerly the joint managing director of Chase Corporation’s New Zealand property group. Mr Guernier said this acquisition was the first

diversification move since Mr David Hallam secured a controlling interest in Carborundum in May of this year. The company recognised the profit potential of existing property developments within Cross Properties. Cross Properties has a portfolio of six properties of which three were poised for development.