30 interested in buying Coalcorp

Press, 6 October 1988, Page 17

30 interested in buying Coalcorp

PA Wellington More than 30 expressions of interest in the purchase of Coalcorp have been received. Potential buyers are from New Zealand, Australia, Japan and Europe, the Coalcorp chairman, Mr Bob Henare, said yesterday. He said he believed they would be particularly interested in high quality coal reserves in the South Island, such as low-ash West Coast coals. A memorandum of sale would be sent by Treasury to interested parties. The Government has appointed the sharebroking and analyst firm of Buttle Wilson to advise on the sale. The asset valuation for Coalcorp, finalised on

March 31, was $73.9 million, but the Government will be wanting to realise at least $lOO million from the sale. The Government will have to decide what approach to take, including the issue of whether to sell Coalcorp as a unit or be open to offers for parts of the State-owned enterprise. Potential buyers will be informed about the asset and conditions attaching to the purchase. Among companies likely to be interested are New Zealand companies Fletcher Challenge and Downer Mining, Australian giants C.R.A. and B.H.P. and Japanese companies like Mitsui Mining. Mr Henare said Coalcorp wanted the sale to be to one buyer.