Kearns stake sold at 30c premium

Press, 26 January 1988, Page 23

Kearns stake sold at 30c premium

PA Wellington Troy Corp has sold its stake in Christchurchbased Kearns Corp to Duke Securities NZ, Ltd, the local subsidiary of a Melbourne-based investment banker, at a premium of more than 30c a share above the prevailing market price. Troy announced yesterday it would be paid 220 c a share in cash within seven days for the 34.6 per cent interest in Kearns. Kearns closed at 187 c a share in market trading last week.

The sale, of 1.6 million shares, is worth $3.52 million.

In a statement, Troy’s managing director, Mr Keith Palmer, said the deal with Duke was made with the consent and agreement of Kearns who considered the new shareholder favourably. A Duke director, Mr Mervyn Reid, was reported on Friday as saying that his was a lowprofile, public, unlisted company looking for an opportunity to expand into New Zealand. Duke had consents from the Overseas Investment Commission and the Commerce Commission for the Kearns deal, he said. Kearns has property and financial services assets mainly in Christchurch. Troy also secured a premium on its sale, also announced yesterday, of an 11.25 per cent stake in Akron Corp for $1.03 million. The 1.2 million Akron shares were sold for 86c each, Troy told the Stock ■ Exchange. Akron traded last on the market at 50c. The Troy announcement did not disclose the buyer. Akron is a listed investment banker, specialising in funding to the bloodstock industry.