Richmond Smart link

Press, 26 November 1987, Page 30

Richmond Smart link

PA Wellington Richmond Development Corporation and Smart Group .will merge and form a new holding company, Richmond Smart Corporation. , The proposal comes after Richmond Development’s recent acquistion of a 55 per cent holding in Smart Group. This holding was bought from the Smart family in return for Richmond shares, resulting in the Smart family acquiring a 40 per cent interest in Richmond.

As a result of the merger, Richmond Smart will have interests in New Zealand and Australia involved in property development and investment, hotel ownership and management, and a variety of manufacturing and distribution

operations. Under the terms of the merger, Richmond shareholders will receive one 50c share in the new company for each ordinary 40c Richmond share, and Smart Group shareholders will receive six 50c shares in the new company for every five ordinary 50c Smart shares. For each existing Smart Group option, holders will receive one option in the new holding company which will be exercisable in October, 1988, and convert to 1.6 fully paid Richmond Smart ordinary shares upon payment of 100 c.

Fully paid shares in Richmond Smart Corporation after completion of the merger will number 74.8 M, representing a share capital of

$37,4M, directors said in a joint statement. The first balance date of Richmond Smart Corp will be June 30, 1988. At present Richmond’s financial year ends on June 30 and Smart Group’s on December 31. Gross assets of the new company will be $5OO million with shareholders’ funds of $2OO million. This would rank it in the top 25 New Zealand companies, directors said. Richmond Smart directors have forecast an after-tax profit for the new company for the period ending June 30, 1988 (on an annualised basis) of not less than S23M. The forecast was exclusive of development margins, property revaluations >• and extraordinary items, they said.