Rada in hunt

Press, 20 February 1988, Page 27

Rada in hunt

PA Wellington The troubled investment company, Rada Corp, is seeking buyers for its investments in Newmans Group, Fullers Corp, Prorada Properties and General Properties. “The review of Rada’s affairs makes it clear the company’s large cash flow shortfall between dividends received and interest paid makes it uneconomic to retain these investments,” chief executive, Mr Mike Feeney, said yesterday.

“We have discussed our intentions with the boards of the companies concerned and they have recognised the

necessity for this action.” Rada owns 49 per cent of Australasian tourism group, Newmans Group, Ltd, 42 per cent of Northland tour operator Fullers Corp, and 51 per cent of Prorada Properties. Prorada Properties in turn owns 36 per cent of General Properties and Rada owns another 9 per cent directly. The 49 per cent stake in Crown Corp is still under review, Mr Feeney added. The reorganisation of Rada Corp is part of a rescue package which will see Elders IXL become the majority shareholder in Rada Corp which in turn owns 44 per cent of NZ Forest Products.