Elders Investments loss

Press, 9 March 1988, Page 38

Elders Investments loss

NZPA-Reuter Hong Kong

Elders Investments, a Hong Kong listed unit of Elders IXL, has reported an after-tax loss of SNZ2S.B million for the period between August 28, when it commenced business, and December 31. It said in a statement an operating profit of SNZI2.7M during the period was wiped out by a $38.2M write-down of current assets to market level in the wake of the global stock market crash. As of December 31 its net asset value was 431 c a

share with! all assets valued at market price. Its book value was 446 c a share against 469 c when it was floated, in October just before the crash. Elders Investments said it had $139.7M cash on hand at the end of the fiscal period, and that during the period it cancelled a S29BM short-term loan facility |and replaced it with a S7SM long-term facility. It said that with its substantial cash balances it | is well positioned to take advantage of current market conditions, and that a number of prospective investments are | being evaluated. Elders Investments said

it has raised its stake in an unidentified United States listed company.

Details of the stake and purchase price were not revealed, but Elders said the investment has been written down in its books to SI2OM, the market value on December 31, from the cost of SI27M. Elders Investments said it will accept the cash offer by New Zealand Forest Products of sAust2.so a share for its stake in Elders Resources. Elders Investments said the market value of its shares in Elders Resources has been written down to the offer price, resulting in a loss of $23.4M.