Lanes founder to fight BIL

Press, 16 August 1988, Page 24

Lanes founder to fight BIL

PA Auckland One of the founders of Lanes Industries, Ltd, has decided to fight the takeover of the company by the Brierley Investments subsidiary, BIL Equities No. 12, Ltd. Mr H. J. Lane says that, although the family controls upwards of only 400,000 shares of the 16.7 million in Lanes, he considers the BIL offer is too low and he will not accept it. Mr Lane, in a letter to the

"New Zealand Herald," notes BIL already holds 65.3 per cent of the issued capital after becoming a major shareholder in 1983. The subsequent acquisition of horticultural interests reduced the Lane family interest to a minor shareholding.

A combination of circumstances has depressed the price of the ordinary shares for a high of 170 c last year to a low of 40c this year. “However, we feel that the low price of 40c had more to do with the recent acquisition of shares by Brierley to bring its holding to 65 per cent than to any other factor. "Because of the limited marketability of the shares we feel that the low price of 45c was an unreal one and probably one at which no great volume of shares was traded.

“In the absence of an audited set of accounts, we note the chairman’s statement that the written down asset backing is now 80 to 90c a share and feel that because of the circumstances a bid should have been made for the balance of the shares based on this value.”

The offer should have been accompanied by a copy of the audited accounts. The year ended on June 30, after all, he said.

“We feel the offer based on the last sale price to be a spurious one, given the circumstances.”