Exchange severely censures Renouf Corp

Press, 21 November 1987, Page 29

Exchange severely censures Renouf Corp

PA Wellington The New Zealand Stock Exchange has severely censured Renouf Corporation and its directors for failing to inform fully the New Zealand and Hong Kong markets about the take-over offer for Impala Pacific Corporation, and for causing confusion about transactions between Renouf Corporation’s major shareholders. Until further notice, all market announcements made by Renouf Corporation to the Stock Exchange would be required to be signed by a majority of the board of directors, the exchange’s president, Mr Rex Pearson, said yesterday. Renouf Corporation’s chairman, Mr Mark Horton, would make no comment on the censure, but said the full board would have to consider the matter. The Stock Exchange investigated Renouf Corporation’s withdrawal of its take-over offer for Impala after receiving a statement from the Hong Kong Take-overs Committee strongly condemning Renouf Corporation’s directors for misleading the market about the nature of offer and making an unjustified withdrawal, Mr Pearson said. It was clear from the papers made available to the exchange in the course of the investigation that the decision not to proceed with the offer for Impala had been influenced to a significant degree by the fact that Sir Francis Renouf did not acquire the major part of the Ariadne shareholding in Renouf Corporation as previously announced, Mr Pearson said.

The failure of Renouf Corporation to advise the market promptly of this had not allowed investors and the shareholders of either company the opportunity of making fully informed investment decisions, he said.

“The exchange had also been concerned at some announcements by the company or individual directors in recent months of transactions which were later shown to be subject to undisclosed conditions and which had subsequently fallen through.” Suspending Renouf Corporation would not be in the best interests of the shareholders, and though the composition of the board of Renouf Corporation had now changed, the exchange said it had censured the company to make all directors of listed companies aware of their obligations to keep the market fully informed. Mr Pearson added that the exchange was also reviewing announcements made by Kupe Group, Ltd, Ariadne Australia, Ltd, and Judge Corporation, Ltd and would comment further when these reviews were completed. Adrian Brokking comments:

The remarks by the exchange no doubt refer to the many confusing and sometimes conflicting statements made this year about the arrangements and restructuring between Ariadne Australia, Ltd, Judge Corporation and Renouf Corporation. Renouf Corporation has had three different chairmen this year: Mr Bruce Judge, Mr Mark Horton and Sir Francis Renouf (twice).