Goldcorp buys Arahi stake

Press, 17 October 1987, Page 23

Goldcorp buys Arahi stake

PA Wellington Goldcorp Holdings and Arahi Properties said yesterday that Goldcrop would take up a stake in Arahi Properties amounting to 46.3 per cent of the voting rights of the company. Arahi Properties advised its “don’t sell” notice to shareholders is now withdrawn. The agreement, subject to Commerce Commission approval, will be settled by the issue of Goldcorp shares and the balance in cash. Goldcorp will acquire the shares and options now held by Hawke Investment Corporation, Messrs G. McKay, B. C. Hooker, J. G. Collinge, R. G. Greedus and G. L. Hislop, Bramiro Holdings and Citifarm Corporation.

All threatened and actioned legal proceedings among shareholders are being withdrawn as part of the agreement. In the SSM deal, Goldcorp .will acquire a total of 5,315,475 shares and 8,183,940 options in Arahi Properties at prices ranging from 70c a share to 81c a share and 10c to 18c per option. Prices will average 74.5 c a share and 12c per option. Asset backing of Arahi Properties shares is 76.5 c a share.

The shareholdings will give Goldcorp 27.98 per cent of the shares in Arahi Properties and 80.55 per cent of the options.

The agreements require the issue of 2,367,508 Goldcorp 50c shares at 110 c, with the balance settled in cash.

The settlement should be finalised by November 30. The existing Arahi Properties directors, Messrs McKay, Hooker, Greedus and Hislop will all resign from the board on settlement of the deal and Goldcorp directors Mr G. R. Pendergrast, Mrs D. O. Pendergrast and Mr B. E. Tunnicliffe are expected,, to replace them..

Mr P. G. Alexander will remain as a director but will step down as chairman in favour of Mr Tunnicliffe.

Goldcorp’s directors and Mr Alexander, who will emerge as the major shareholders in Arahi Properties, have reached agreement on their future working relationship. They have agreed on expansion into the Australian property market and

continued expansion in New Zealand as the future direction of Arahi Properties.

Arahi Properties’ head office and. centre, of operations wilj be moved to' Auckland and a name change is planned.

Some rationalisation between Goldcorp property subsidiaries,: and Arahi Properties is expected?: ■

Goldcorp’s property portfolio amounts to SB7M with a further S46M worth of property about to be acquired. Arahi Properties’ portfolio is valued at S27M. Hawke Investment Corporation will continue as an independent investment company and its directors have said they will seek an immediate listing on the New Zealand Stock Exchange.