Pioneer offer

Press, 27 January 1988, Page 33

Pioneer offer

NZPA-AAP Sydney Pioneer Concrete Services is likely to gain 100 per cent ownership of oil refiner, Ampol, through a scheme of arrangement to be presented to Ampol shareholders at an extraordinary meeting today. Ampol shareholders are to meet to approve the purchase of 7 per cent of Ampol shares by Pioneer Concrete, which will take its stake to 88 per cent. If the acquisition is approved, Pioneer’s scheme of arrangement, which also requires court approval, will be put to shareholders for approval. Pioneer is proposing to buy out the remaining 12 per cent of Ampol by offering Aust3soc for each share and each convertible note. A spokesman said the takeover would enable

Pioneer to make significant cash savings in such things as maintaining an Ampol share registry and compiling annual reports. Next Wednesday, Giant Resources shareholders will meet to approve Ampol’s purchase of 20 per cent of its shares and a number of options which, if fully exercised, would give it close to 50 per cent. Ampol bought 20 per cent of gold miner, Giant, from Ariadne Australia last November, but needs shareholder approval to buy another 20 per cent and to exercise the options. Independent directors of Giant have recommended the acquisition on the grounds that the relationship with Ampol and Pioneer would enhance further growth.