NZPA sells Reuters scrip

Press, 9 February 1989, Page 23

NZPA sells Reuters scrip

p A Dunedin NZPA Investments yesterday confirmed that after the sale of the company’s holding of 2.78 million Reuters Holdings A ordinary shares to NZPA shareholders, the shares had been converted to Reuters B shares. The chairman of NZPA Investments, Mr Julian Smith, said the converted B shares were subject to the same restriction on sale as the remaining A shares. The conversion was done with the consent of the other “A” shareholders. NZPA, formerly known as New Zealand Press Association, Ltd, held 2.8 per cent of Reuters A shares. The B shares resulting from the conversion on a one-for-one basis have been distributed to nzpa’s own shareholders. Reuters said in a statement from London that B shares would be registered in the name of NZPA Nominees and be subject to the same restrictions on sale as the remaining 97.26 million A shares. The transaction reflected a reorganisation of NZPA in anticipation of tax law changes in New Zealand, Reuters said. In aggregate the “A” shareholders, who face restrictions when seeking to sell their shares, held 55.5 per cent voting control as at December 31, 1987. In addition, a founders’ share administered by trustees can exercise over-all control. Reuter officials declined to comment on recent media speculation that other “A” shareholders may be seeking mutual agreement to convert into “B” shares and thereby be in a position to raise funds through the sale of stock.