Talks on Somex cease

Press, 9 February 1989, Page 21

Talks on Somex cease

PA Wellington Negotiations for the sale of Tranzequity Holdings’ majority stake in Somex Corp have ceased and a sale is now unlikely, Somex says. Hamilton-based investor Tranzequity launched an unsuccessful takeover bid for Somex last March, after buying a controlling 72.5 per cent stake in the Auckland investment company. Tranzequity paid 50c for most of its Somex shares, buying out founding director, Mr John Brunckhorst, and brokers Jordan Sandman Smythe. The takeover bid was based on a one-for-one share swap plus 5c cash; Tranzequity shares were worth 50c at the time so the bid was valued at 55c. Minority shareholders strongly opposed the takeover as Tranzequity’s share price slumped to 35c, and the investment company abandoned the bid last July after failing to reach 90 per cent acceptance. Last November, Tranzequity put 14,331,000 ordinary Somex shares up for sale at 53.3 c each — 71.66 per cent of issued capital. In a statement yesterday, Somex said its directors had a clear direction for Somex which they believed would be of advantage to both Tranzequity and Somex shareholders.