Prierley: no plans made for share in Petrocorp

Press, 5 March 1988, Page 6

Prierley: no plans made for share in Petrocorp

PA Wellington Brierley Investments. Ltd, said yesterday it had made no plans for its 15 per cent stake in Petrocbrp now that the Government’s 70 per cent will go to . Fletcher Challenge. Ltd.

Brierley bought its holding in June, 1987/at 140 c a share as a forerunner tothe j public share issue for a further 15 per cent. Under the agreement Fletcher Challenge signed with the Government on Thursday evening, the former is to offer the

minority shareholders 175 c a share. Brierley was also a contender for the Government’s shareholding, but Brierley’s chief executive, Mr Paul Collins, said his company was "quite relaxed" about its failure to get the controlling stake. He said Brierley was at a disadvantage because the Commerce Commission had ruled its application to take up to 100 per cent of Petrocorp required further investigation. The commission ; is ex-

pected to; make a final determination on the Brierley application after earlier indicating it did not favour consent because of competition and monopoly concerns. Petrocorp’s deputy chairman. Mr Norman Geary, said it w r as pleasing that control and ownership of Petrocorp would be retained in New Zealand. The Commerce Commission z yesterday announced it would clear British Gas to take 100 per cent of Petrocorp, in

spite of the end of that deal. : i Meanwhile, Fletcher Challenge can look forward to its profit and loss account improving by $lOO million this! year with the acquisition of Petrocorp. Petrocorp is confident it will achieve its forecast profit of $lOl million for the year to March 31. F.C.L. has a balance date of June 30 and intends to buy out minority shareholders at 175 c a share or the equivalent in marketable securities.