Westmex acts to keep control

Press, 7 December 1988, Page 46

Westmex acts to keep control

NZPA-AAP Sydney Russell Goward’s Westmex has moved to retain control of its U.K. investment vehicle, Charterhall, by boosting its holding to 52.3 per cent.

Mr Goward, chairman of both Westmex and Charterhall, said the action was a precautionary measure to ensure Charterhall remained a subsidiary if the company’s capital was diluted. Great Universal Stores, Pic, has options to acquire about 31.48 million shares, equivalent to about 8.25 per cent of the current issued capital. Westmex now holds 52.3 per cent or 199.35 million shares in Charterhall, up from 50.1 per cent previously. Mr Goward said

Westmex would continue to increase its holding as opportunities arose.

He would not disclose the price Westmex paid for the shares, although Charterhall’s price has fallen to about 18.5 pence a share from about 24 pence two weeks ago.

Great Universal can exercise its options, which expire in December. 1990, at 23.92 pence a share.

Charterhall last week announced a £27.2 million (5NZ77.7 million) bid for Corah, Pic, one of the oldest textile companies in the U.K. The offer, which has been recommended by Corah directors, will see Charterhall’s sales rise to about sAust7s million (SNZIOO million) a year, according to Mr Goward.