Hamelyn has book loss

Press, 3 December 1987, Page 32

Hamelyn has book loss

PA Wellington Hamelyn Group has disclosed an unrealised loss of about $900,000 from its part in a flotation of call options Anzon Investments Intending promoting. In a statement issued today Hamelyn directors confirmed that Anzon had retained Hamelyn to advise on the pricing, rights, and conditions attaching to the options, and the structure and documentation of the issue. However, they said Hamelyn had also been prepared to take 250,000 shares in the four companies involved, Brierley Investments, Goodman Fielder, Fletcher Challenge, and Chase Corporation. In the fortnight after the sharemarket decline Hamelyn had reviewed the options issue’s potential and “confirmed our assessment of the likely

positive demand for a public issue of call options as soon as the sharemarket stabilised.” In the first week of November Hamelyn acquired “a significant proportion of the shares” it Intended to contribute to the scheme and paid 306 c for Brierley, 295 c for Chase, 453 c for Fletcher Challenge, 418 c for Goodman Fielder shares. “Based on today’s prices, Hamelyn has an unrealised (pre-tax) deficit of approximately $900,000 on the cost of the share,” directors said. However, Hamelyn had shareholders’ funds of “In excess of $2O million” and did not intend to sell the shares yet.

“We continue to hold the view that an issue of call options in leading listed shares will, in due course, be well received by the market”