E’corp pays $327M

Press, 18 March 1988, Page 12

E’corp pays $327M

Equiticorp’s purchase of the Government’s stake in New Zealand Steel was completed yesterday.j Interests of ; the chairman of Equiticorp, Mr | Allan Hawkins, bought 93 million Equiticorp shares held by the Crown. (

The Government disposed of its interest in October, receiving one I Equiticorp share for every eighj New Zealand Steel shares. The Equiticorp shares were to be repurchased from the Government by March ]2O at 352 c each. (Equiticorp yesterday closed at 97c, compared with 365 c at the (beginning of October.) ( The purchase of the Equiticorp shares from the Government lifts the Hawkins stake in Equiticorp to (50 per cent. ■ ; . | Mr Hawkins presented a cheque for 5327 M yesterday to the Minister of Finance, Mr Douglas, the Minister for State-Owned Enterprises, Mr Prebble, and the Minister of Trade and Industry, Mr Caygin. I The Government will use the proceeds (to retire Government debt, in linle with the strategy ( in the 1987 Budget, Mr. Douglas said.

“We are inf no doubt that the transfer) of majority ownership of New Zealand Steel to Equiticorp will be good for New Zealand and good for New) Zealand Steel and its employees. |

“That company wi)l now be on a much more businesslike footing, as it faces the challenge of successfully completing the expansion project and developing the market for jits additional production.”