Ariadne Australia issue on schedule

Press, 25 January 1988, Page 27

Ariadne Australia issue on schedule

NZPA-AAP Sydney The sAustl2o million rights issue that is likely to decide the future of embattled investment company, Ariadne Australia, closed on schedule on Friday after heavy turnover. A total of 92.2 million of the one-for-two renounceable rights changed hands, bringing turnover for the week to 131.45 million. Most of the 73.85 million crossed in Brisbane on Friday were through Brisbane broker Paul Morgan Co, which has been associated with Ariadne, but a Morgan spokesman would not say whether a single buyer was behind the transaction.

Morgan said it was the buyer for about 20 million of the 27 million traded on Thursday. There was no further statement from Ariadne chairman, Bruce Judge, who said late on Thursday night that a syndicate of

investors was documenting a proposal to buy Judge Corporation’s 19.9 per cent stake in Ariadne. He said participation in the syndicate had been offered to Essington Developments and EIE Development Co. The two companies were involved in Oxted Pty, a consortium led by Kerry Packer, which last month pulled out of a conditional agreement to buy the 19 per cent stake. Oxted was 50 per cent owned by EIE, a Japanese property developer, and 25 per cent each by Essington and Mr Packer’s Consolidated Press. ‘~ Mr Judge said arrangements were in progress for the rights attached to the Judge Corp stake to be taken up, but he did not give details. The issue is expected to be heavily undersubscribed. By Tuesday only 4312 of shareholders, representing 3.3 million shares, had taken up their entitlement.

It has been underwritten by Pembroke Securities, which is 60 per cent owned by Larry Adler’s FAI Insurance. FAI has 100 per cent sub-underwritten the issue. Pembroke on Thursday won a court case to stop Ariadne extending the issue by six weeks. FAI director, Bruce Corlett, said the exact size of the shortfall would probably not be clear for at least two weeks. Brokers have two weeks after the close of rights trading to register renunciations. Ariadne shares closed steady at 50c on Friday. Mr Judge also announced on Thursday night there were negotiations under way over Ariadne’s partnership with Bill Simon, former U.S. Treasury secretary and an Ariadne director, He said the effect would greatly increase Ariadne’s returns and percentage of ownership