Spicers gets inroad into Nth America

Press, 13 September 1988, Page 25

Spicers gets inroad into Nth America

NZPA-AAP Sydney Spicers Paper of Australia has been given an inroad into the massive North American market through a share buy-up by Canadian newsprint giant, Abitibi-Price Inc. Abitibi-Price, one of the world’s top paper producers, bought rights to 19.9 per cent of Spicers on-market for Aust 125 c each.

Spicers is the first of three divisions to be floated off under a restructure of its parent, James Hardie Industries. Abitibi-Price executive vice-president, Mr Ron Oberlander, said the purchase, to be taken up in

October, would enable Abitibi-Price to expand into the Asia-Pacific area as part of an over-all strategy to become more active on the international markets.

“Spicers is a well managed and profitable company with excellent market share and potential growth in all of its areas of operation,” he said. Abitibi-Price, which had net sales of sCan3 billion (SNZ3.9B) last year, will be represented on the Spicers board from next month. James Hardie remains the largest shareholder in Spicers with 45 per cent. It is offering the remain-

ing 55 per cent to its shareholders.

Mr David Macfarlane, chairman of Spicers and managing director of James Hardie Industries, said the Abitibi-Price investment should provide Spicers with new business opportunities.

No other overseas interest had been shown in Spicers Paper shares. “The Abitibi-Price purchase is something of a one-off,” he said.

James Hardie is to post the Spicers prospectus and acceptance documents to shareholders on September 21. Rights trading will close on October 12.